The pitch from Stimwave, a medical device maker, was alluring. As a startup tackling chronic pain with nerve-stimulating devices, it promised to release patients from the stranglehold of addictive painkillers. And unlike its competitors, whose devices required patients to have clunky batteries implanted in their bodies, Stimwave’s system came with a sleek, wearable battery attached to thin wires under the skin.
There was just one problem: some of the devices contained dummy pieces of plastic that did nothing at all.
While the components were fake, they let Stimwave sell their devices for thousands of dollars more than they otherwise could. The company’s CEO, Laura Perryman, pushed the company’s staffers to lie to physicians about the plastic part being medically necessary, according to interviews with former employees and a review of court filings.
This article is exclusive to STAT+ subscribers
Unlock this article — plus in-depth analysis, newsletters, premium events, and news alerts.
Already have an account? Log in
To submit a correction request, please visit our Contact Us page.