New York Led by Connecticut General Life Insurance Co., a group of insurers has sued Fresenius Medical Care North America for fraud in U.S. District Court in Manhattan. The suit alleges that the insurers paid for unnecessary medical care because of certain illegal activities by Fresenius' U.S.-based subsidiary, National Medical Care.

NMC recently admitted to defrauding Medicare before being acquired by Fresenius and paid a record fine of $486 million in criminal and civil penalties.

The newest suit did not seem to surprise Fresenius officials. "Piggyback lawsuits are common as private insurers presume that actions affecting the Medicare program also affect them," said John Markus, Fresenius' senior vice president, in a written statement. "This case is different because virtually all of the issues covered by the government settlement related to rules and procedures specific to Medicare and other federal programs." -R.P.

Sylmar, Calif. MiniMed Inc. recorded substantial increases in net income for both the fourth quarter and year ended Dec. 31. For the fourth quarter, net income increased 56 percent to $7.4 million, or 23 cents a share, compared with net income of $4.8 million, or 16 cents a share, for the same quarter a year ago. The company's fourth-quarter results included a $1.5 million charge related to a software correction on certain Model 508 insulin pumps introduced early in the quarter, reducing net income.

For the year, net income increased 68 percent to $21.9 million, or 70 cents a share, compared with net income of $13 million, or 46 cents a share, recorded in 1998. -R.P.