Reliance Medical Systems Settles False Claims Action Brought by the US Department of Justice (DOJ) For Minimal Dollar Sum
BOUNTIFUL, Utah--(BUSINESS WIRE)--After nearly a decade of investigation and litigation, the US Department of Justice (DOJ) has agreed to settle its False Claims Action against Reliance Medical Systems for a relatively minimal dollar sum. Reliance Medical Systems is a medical device company that specializes in solutions for the spinal implant market.
“the DOJ improperly targeted Reliance’s partnerships, hospitals, and banks, pressuring them to cut ties with Reliance or face charges of their own”
“During its time trying to force Reliance into a multi-million dollar settlement,” said Bret Berry and Adam Pike, Reliance’s founders and principals, in a joint statement, “the DOJ improperly targeted Reliance’s partnerships, hospitals, and banks, pressuring them to cut ties with Reliance or face charges of their own.”
“Additionally,” added Berry and Pike, “the DOJ tried to conceal or alter documents and other evidence from Reliance during the discovery and pre-trial process, including important exculpatory evidence. Due to the misconduct cited by the court and other factors, we understand that some doctor-owners who actually paid settlement sums are exploring options for seeking recovery of such payments from DOJ or elsewhere.”
“In the days leading up to the trial, the Honorable Judge Dean Pregerson stated on the record that in his many years on the bench, he had never seen the DOJ lawyers engage in such improper action in a civil case,” said Patric Hooper, a Founding Partner of Hooper, Lundy and Bookman, PC, Reliance’s lead counsel throughout the case.
According to Hooper, at the close of the very first day of the May 2022 jury trial, during which the HHS OIG lead agent was unable to competently or coherently respond to questions presented to her on cross examination, judge Pregerson strongly suggested that DOJ settle the matter.
After demanding over $30 million in damages and penalties at the beginning of the trial, DOJ and Reliance agreed to settle the case for a restitution payment of $1 million, with no admission of guilt in the matter, and DOJ’s unprecedented release of liability on the part of Reliance and its companies and principals, Pike and Berry, for a period from 2006 until July 1, 2022.
“Reliance is happy to have the matter behind us,” concluded Berry and Pike, “with no chance of appeal or mistrial.”
Contacts
Media Contact: Paul Williams, paul@medialinecommunications.com, 310/569-0023
View source version on businesswire.com: https://www.businesswire.com/news/home/20220713005688/en/