For Immediate Release:
Contact: Nazneen Ahmed
919-716-0060
(RALEIGH) Attorney General Josh Stein today announced that a $500,000 settlement has been reached to resolve allegations that Joint Active Systems, Inc. (JAS) caused the submittal of false claims to North Carolina Medicaid. The funds from this settlement will return taxpayer funds to the Medicaid program.
“My office will hold accountable Medical device manufacturers who drain resources from our government healthcare programs, no matter how elaborate and layered the scheme may be,” said Attorney General Josh Stein.
Between January 6, 2012 and January 29, 2021, JAS allegedly caused the submittal of false or fraudulent claims of its range-of-motion JAS EZ devices, bypassing North Carolina Medicaid regulations, and causing the devices to be improperly claimed as custom-fabricated orthotics, while also paying local North Carolina orthotic and prosthetic providers to make the improper claims to North Carolina Medicaid on JAS’s behalf.
The federal and North Carolina False Claims Acts authorize the governments to recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted. It should be noted that the civil claims resolved by settlement here are allegations only, that there has been no judicial determination or admission of liability, and that JAS denies the allegations.
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