Public disclosure of delayed inside information on Medicalgorithmics S.A. entering into negotiations with the United States regarding the federal False Claims Act
Acting on the basis of Article 17(1) and (4) of the Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the EU L 2014/173, p. 1) (“MAR”), the Management Board of Medicalgorithmics S.A. with its registered office in Warsaw (“Company” or “Issuer”) hereby discloses the inside information whose disclosure was delayed by the Company on 21 October 2016 under Article 17(4) of MAR.
The delayed information:
“On 21 October 2016, the Company and Medi-Lynx Cardiac Monitoring, LLC (“ML LLC”), the Issuer’s subsidiary, entered into negotiations with the Attorney General of New Jersey and the Department of Justice of the United States (collectively: “DOJ”) in connection with an inquiry against ML LLC and the Company conducted by DOJ. DOJ claimed that ML LLC and the Company designed the Medi-Lynx online registration process in a way that was supposed to steer customers (physicians) to choose the telemetry that provided the highest refund for ML LLC patients covered by the Medicare programme, regardless of their willingness to choose one of the cheaper cardiac monitoring services, which DOJ found to be an infringement of the federal False Claims Act; “FCA”.
The negotiations concern establishing the terms of DOJ ceasing to support allegations against the companies referred to above in court, in order to avoid costly, prolonged proceedings in which a court would rule on the admissibility of DOJ’s allegations.
The participants of the negotiations will, in good faith, take all the steps required to successfully close the negotiations.”