On February 27, a federal jury in Minnesota returned a verdict finding that Precision Lens and its co-founder, Paul Ehlen (together, Defendants), violated the Anti-Kickback Statute, and in turn the False Claims Act (FCA), by providing kickbacks to doctors to induce them to use Defendants' products, resulting in approximately $43 million in single damages. The U.S Attorney's Office in Minnesota promptly announced that the Department of Justice (DOJ) will seek treble damages and statutory penalties under the FCA, which could potentially hike the $43 million verdict up to $485 million.
The government sought to prove at trial that, between 2006 and 2015, Defendants paid kickbacks to ophthalmologists to induce the physicians to utilize products provided by Precision Lens in connection with eye surgeries paid for by federal payors, including Medicare. DOJ argued that Precision Lens and Mr. Ehlen treated ophthalmologists to high-end dining and entertainment and private flights, among other things. The alleged kickbacks included upscale hunting, fishing, skiing, and golfing trips, discounted or free travel to and from the same, and discounted (or free) frequent flyer miles for the physicians' private use. DOJ further sought to establish that Defendants often covered these and similar costs outright, but when physicians paid anything in return, it was far below fair market value.
The ten-day trial took place between January 9 and February 13, when DOJ and Defendants submitted...
Foley partner Lisa Noller, Chair of the Firm’s Litigation Department, will be speaking at the American Bar Association’s Qui Tam & Civil False Claims and Healthcare Fraud Institute in Washingt...