013: Merit Medical Systems and Whistleblower

Situation

Merit Medical, a mid-sized medical device manufacturer, paid honorariums and other perks to high-volume users of its products. The Company’s Chief Compliance Officer raised concerns over the practice and questioned the legitimacy of some payments. When leaders at the company ignored his reported concerns, the compliance officer initiated a whistleblower lawsuit. Authorities began to investigate whether Merit paid kickbacks to induce doctors to make use of its products.    

All the information in this background comes from the company’s website, a Department of Justice press release and related articles.