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Settlement In U.S. Diversion Case

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Milpitas, CA – January 18, 2010 – LifeScan, Inc. has received a substantial sum from United States Medical Supply, Inc. and United States Diabetic Supply, Inc. (USMS/USDS) of Miami, Florida, as settlement of LifeScan’s breach of contract-based diversion claims against USMS/USDS.  Although USMS/USDS did not admit liability, LifeScan had alleged that these companies knowingly and intentionally breached the terms of certain agreements, which prohibited the sale of LifeScan products to anyone other than individual mail order patients, by diverting product it received from LifeScan to unauthorized resellers.  The amount paid in settlement represents the return of discounts and rebates paid on the LifeScan products.

“This settlement demonstrates LifeScan’s resolve to stop those who would divert our products in violation of our written agreements, wherever and whenever it occurs,” said Roy Albiani, LifeScan’s Global Director of Brand Integrity.  “We will continue to be vigilant and take the necessary steps to protect patient safety, the integrity of our products, and the supply chain.”

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