Medical Device Manufacturer Assessed for $25 Million Punitive Damages Award Wins Reduction
On July 2, 2017 a California trial judge reduced a $25.1 million dollar punitive damages jury award against Cardiovascular Systems,Inc. (CSI) to $2.27 million. The plaintiff was a management level employee of CSI which manufactured coronary vascular disease products. He alleged that CSI retaliated against him for complaining of off-label marketing and an illegal scheme in which sales representatives would pay kickbacks to doctors to use their products in a manner that had not been approved by the FDA.
The plaintiff claimed that shortly after complaining about the illegal sales practices, CSI reduced the territory he was responsible for which reduced his compensation and then he was fired without just cause. The jury believed the plaintiff and awarded him $3.2 million dollars in compensatory damages plus $25 million in punitive damages. Based on the the Court's ruling that cut the punitive damages award, the plaintiff would recover a total of $5.4 million dollars. Babyak v CSI, No. BC601259 Los Angeles Superior Court
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