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Investigations  /  05.21.2020

Investigation of Resmed, Inc.

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Are you a former employee of Resmed, Inc. (RMD) and own stock in the company? Robbins LLP is investigating breaches of fiduciary duty by the officers and board of directors of RMD. 

Resmed, Inc. (RMD) Agrees to Pay More Than $37.5 million in Department of Justice Settlement

On January 15, 2020, the Department of Justice (“DOJ”) released a press release announcing that ResMed, Inc. had agreed to pay more than $37.5 million to resolve allegations the Company had violated the False Claims Act through its payment of kickbacks to durable medical equipment suppliers, sleep labs, and other healthcare providers. The allegations state that ResMed provided these entities with free amenities, including free call center services and other free patient outreach services to enable companies to reorder supplies for their patients, free equipment for sleep labs, and guarantees of payment on interest-free loans to induce them to increase patient referrals to ResMed. Regarding the decision, the Assistant Attorney General of the DOJ’s Civil Division stated “when a patient receives a prescription for a device to treat a health care condition, the patient deserves to know that the device was selected based on the quality of care considerations and not on unlawful payments from equipment manufacturers.”

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