The world’s largest eyeglass lens manufacturer reached a settlement agreement for violations of the California Insurance Frauds Prevention Act.
WASHINGTON--(BUSINESS WIRE)--Today, the nationally recognized law firm of Baron & Budd announced a settlement of $23.8 million in a whistleblower lawsuit filed against eye glass lens manufacturer, Essilor Laboratories of America, for violations of the California Insurance Frauds Prevention Act. The lawsuit alleged the company paid hundreds of millions of dollars in kickbacks and other incentives to eye care providers (ECPs) in exchange for selling its expensive lens products. This follows a $22 million False Claims Act settlement against Essilor in August 2022 in which Baron & Budd also represented the whistleblower client.
“Whistleblowers, like our client, are crucial in the process of identifying and prosecuting companies like Essilor that perpetuate schemes that defraud insured individuals”
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The lawsuit also alleged that the company “engaged in a far-reaching scheme including the offer and/or payment of both ‘classic’ kickbacks – vast amounts of cash, trips, and lavish entertainment – as well as free and/or reduced-cost professional services including marketing support and business consulting. Essilor offered and/or provided these kickbacks to eyecare professionals for the purpose of buying loyalty and rewarding those who switched to Essilor products and optical laboratory services.”
According to the suit,...
Although on appeal the court distinguished that there was new information in the claim, the court ultimately found the new information was not material, nor was it plead with particularity. The U....