Appeals Court Re-Opens Stryker Lawsuit Over Kickbacks

A federal appeals court reversed a lower court decision and revived a lawsuit between device manufacturer Stryker and a Brazilian insurance association that is accusing the company of paying kickbacks to doctors for using its devices.

The Sixth Circuit Court of Appeals in Cincinnati ruled that the lower district court should not have ruled that the case be brought in Brazil rather than Michigan where Stryker is headquartered.

According to the Brazilian association, by offering kickbacks to doctors, “the improper influence Stryker allegedly brought to bear increased the cost of devices as well as the number of devices implanted and surgeries performed,” which association members had to pay for, court documents said.

The association claims Stryker’s alleged actions “not only injured its insurer members, but also the Brazilian public health system as a whole and patients throughout the country.”

The district court had dismissed the case in June 2017 because the association had “minimal connection to the United States,” court documents said. However, the federal appeals court ruled that a Brazilian court may not be able to “exercise jurisdiction over the defendant and offer a satisfactory remedy.”

Read the court documents here: www.fdanews.com/06-20-18-Strykerlega.pdf.