Interesting - Lawsuit from Former Rep.

A former top-ranking sales representative for Zimmer Biomet Holdings says he was fired after he complained about the company's practice of giving gifts to doctors to encourage them to use its products.

The claim by Michael Swiss comes in a lawsuit his attorneys filed Thursday in New York, where Swiss sold Biomet dental implants and related devices for four years before his 2011 firing.

Swiss, 43, who said he hasn't been able to find a comparable full-time job since his firing, demands damages from Warsaw, Ind.-based Zimmer Biomet totaling $10 million.

That covers his lost wages, potential future wages, legal fees and punitive damages against the company, said his lawyer, Jennifer Siegel of Sanford Heisler Kimpel LLP of New York.

The lawsuit, filed in New York's Ulster County, says the state's False Claims Act protects workers from retaliation for raising complaints about violations of the act.

A Zimmer Biomet spokeswoman, Monica Kendrick, said the company won't comment on specifics in the lawsuit, but it denies Swiss' main allegations.

Swiss says Biomet ordered him to give trips, meals and other freebies to doctors and their staff as part of marketing its dental products. Swiss said the free goods and services amounted to kickbacks, which aren't allowed under the False Claims Act.

Swiss said he was Biomet's third most productive sales representative in 2009, but after repeatedly complaining about the gift-giving, the company put him on a performance improvement plan and later fired him.

“Mr. Swiss had personal knowledge of alleged illegal kickback schemes Biomet used from at least 2007 until 2011,” said David Sanford, another Swiss attorney. “During this period, he was aware that Biomet allegedly provided money, goods, and services to induce customers — including oral surgeons, dentists, laboratories, hospitals, and educational institutions in Ulster County — to order and use Biomet’s products. Many these customers subsequently sought reimbursement for these products from the publicly funded Medicaid program, in violation of state and federal laws."

The firing caused financial hardship that forced Swiss to sell his longtime home in New Paltz, N.Y., and move to Kunkletown, Pa. He now works at a Lowe’s hardware store, Siegel said.

Gift-giving by medical device companies and pharmaceutical firms was a longtime common practice, before government and the industry itself began severely limiting the practice in the past 10 years.

Biomet was acquired this year for $14 billion by rival Zimmer and the combined company is called Zimmer Biomet Holdings.

In 2014, Biomet agreed to pay $6 million to settle a lawsuit by the U.S. Department of Justice that alleged one of its subsidiaries illegally paid kickbacks to doctors, in the form of service agreements with their staff, to get them to use its bone growth stimulators.

 

oh wow. I always wondered why dental cos didn't play by the same rules as pharma and med device companies.
Be interested to see how this one plays out

 

zimmer has been doing this for years in dental.

 

Time to lower the boom on these law breaking dental companies

 

'He now works at a Lowe’s hardware store, Siegel said.'

At least the guy took a step-up from dental sales.

 

This just sounds like a sour grapes lawsuit. If you were a top performing rep, how the hell could you not get another company to hire you over the last 4 years???

 

Sour grapes or not dental implant companies are notorious for paying exorbitant honorariums, paying for perks, making consultants of those in decision making positions at teaching institutions Zimmer major culprit specifically with one clinician. Moved from one university up north to one down south. Can you say OIG?

 

Really funny.
The only real difference between the two jobs is that the products you buy at Lowes aren't reimbursed by federal $$s. When products you sell end up being paid for with federal and state $$, there are certain things you can't do.

 

"When products you sell end up being paid for with federal and state $$, there are certain things you can't do."

Like what ?

 

Maybe you should really get around to opening up that email/ppt on compliance and begin reading.

 

Compliance?? Who is implementing that? Read the complaint posted online. It's the shorter version of the 88 page complaint which lays out in great detail the bribes ,entertainment and retaliation conducted by the company. Many people will argue that's just a sales job . Keep this in mind when reading. Reps who make HR aware will only experience retaliation. By the SAME people who make you take the compliance course. You think they want to hear about wrongdoing? Just wait until they take your livelihood away. No one cares about False Claims or Medicare Fraud and the proof is in the complaint. The employees are listed by name. They're still employed and everyone is defending them. The ones that aren't left on good terms.

 

Straumann, Nobel, BioHorizon's. I am sure the OIG is going to knock on your doors. I wonder if Zimmer knew about this impending lawsuit before the purchase. If not, very embarrassing. Anyone want to buy an implant company at fire sale prices?

 

Zimmerman went through the whole bone scandal a while back. Dentsply is going FCA lawsuit right now. 3i is just next in line. The straumanns and nobels better tighten up their compliance ship

 

If you read all the I details (especially this specific legal complaint) HR is the one who opposes compliance more than anyone. They go through the motions to make you take a quiz but you'd better not tell them you're uncomfortable or reveal any wrongdoing. Retaliation! Same thing happened in all previous med device and pharma actions the last 15 years.

 

HR sole job is to protect the company

 

yes protect the company from paying fines for reported violations, so.......everything gets swept under the rug.......

 

Wait a minute
You mean to tell me the customers who bought these products and received these kickbacks are going to be in trouble too? Oh my!! Not a good day for anyone when Dr I Didn't Know gets deposed.

 

Yes. You can purchase the original 88 page complaint. Search for it. Doctors are named. Can't wait for their referrals to read all about it . This whole costly mess ( lots of expensive lawyers have been retained since 2011) could've been avoided if HR's expertise wasn't solely retaliation

 

What website to purchase complaint?

 

"Maybe you should really get around to opening up that email/ppt on compliance and begin reading."

Nah. I'm sure the company has my back, besides my doctors love me and would never rat me out to save themselves.

After all, they are professionals and I'm just an idiot peddler with a quota to meet.

Thanks for your suggestion though, I never thought of it.