Company that makes sleep apnea masks to pay $34M in lawsuit
MURRYSVILLE, Pa. (AP) — A Pennsylvania company that makes breathing masks for people with sleep apnea is paying $34.8 million to settle claims it paid kickbacks to suppliers that sold its products.
The settlement with Philips Respironics Inc. was announced Wednesday by the Justice Department.
Justice officials say the company provided free call center support to suppliers whose customers used Respironics masks. They say suppliers that sold masks made by Respironics' competitors had to pay for the call center services.
The Murrysville-based company says it had a "good faith belief" it wasn't doing anything wrong.
A South Carolina doctor who worked for a medical supply company sued in federal court two years ago. The Justice Department, 29 states and the District of Columbia eventually joined the lawsuit.