European eyewear manufacturer resolves government kickback allegations.
Late last month, Essilor Laboratories of America, the North American subsidiary of European eyewear manufacturer Essilor International, agreed to a settlement of almost $22 million to resolve claims the company paid kickbacks and bribes to eye doctors in exchange for for choosing its products.
Essilor International is the world’s largest eyewear manufacturer, and its American division had its headquarters in Dallas, Texas, until the end of 2016. Around the 2015–2016-timeframe, three district sales managers from Texas and Pennsylvania stepped forward with allegations made under the provisions of the False Claim Act (FCA), a federal statute that protects whistleblowers making valid claims about instances of fraud, waste, abuse, and other misconduct regarding federal programs.
After years of investigation, prosecutors found that Essilor gave improper gifts and awards to eye doctors to choose its products over its competitors. While things like reasonable discounts and free samples are legal and fall outside of the Anti-Kickback Statute, the government alleged the company offered illegal bribes including interest-free financing, gift cards, entertainment expenses, retirement account matching, and much more. In doing so, it defrauded governmental programs.
Before the case could go to trial, Essilor reached a settlement with the court. According to the agreement, “Essilor International is an international...
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