Appeals Court Re-Opens Stryker-Brazil 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 their 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.