A Medical Device Daily

Smith & Nephew Endoscopy Division (Andover, Massachusetts) reported that a jury in the U.S. District Court in Oregon decided in Smith & Nephew's favor and found privately-held Arthrex (Naples, Florida) guilty of willfully infringing U.S. patent 5,601,557.

Smith & Nephew Endoscopy and John Hayhurst sued Arthrex more than three years ago, claiming that Arthrex's Bio Suture Tak, PEEK Suture Tak and Push Lock suture anchors infringed a U.S. patent owned by Hayhurst and under exclusive license to Smith & Nephew Endoscopy.

The jury awarded Smith & Nephew $14.7 million for Arthrex's past infringement.

Smith & Nephew now plans to seek an injunction prohibiting Arthrex from further manufacturing or selling the infringing devices in the U.S.

"We are extremely pleased with the jury's decision," said Mike Frazzette, president, Smith & Nephew Endoscopy. "As the preferred provider of innovative arthroscopic tools and techniques to surgeons around the world, we stand committed to protecting our intellectual property and the surgeons who work with us to develop them."

In other legal news:

• Three Miami area brothers who allegedly financed 11 corrupt HIV infusion clinics and a physician's assistant who worked at those clinics have been charged in a $110 million HIV infusion fraud scheme, the Department of Justice's Criminal Division (Washington) and the U.S. Attorney's Office for the Southern District of Florida reported.

The indictment alleges that between January 2001 and November 2004, Carlos and Luis Benitez conspired to submit about $110 million in false and fraudulent claims to the Medicare program for HIV infusion services allegedly provided at 11 corrupt HIV infusion clinics that they owned and controlled. As part of the scheme, Carlos and Luis Benitez referred Medicare beneficiaries to the clinics and directed the beneficiaries be paid kickbacks to induce them to claim they received legitimate services at the clinics when in fact the HIV infusion services were either not provided or were not medically necessary.

The HIV infusion clinics that they owned and controlled were: AH Medical Office; Advanced Medical Rehabilitation Center; Best Medi; Physician's Health Med-Care; Physician's Med-Care; Saint Jude Rehab Center; Global Med-Care; CNC Medical; G&S Medical Centers; Karla Medical Services; and Best Medicare.

• MedQuist (Mt Laurel, New Jersey), a medical transcription service company, has reported that the U.S. District Court District for the District of New Jersey dismissed a South Broward customer class action without prejudice. It will reopen the action if the settlement is not consummated in 60 days (Medical Device Daily, April 10, 2007.

The company is in the process of informing the court that the settlement has, in fact, been consummated through payment of the settlement amount and filing of a stipulation of dismissal with prejudice. The action was filed against the company and certain present and former officers and the complaint alleged that the company overcharged certain non-federal governmental hospitals and medical centers for transcription services. Under the terms of the settlement agreement, the company has paid $7.5 million to resolve all claims.