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Sunday, May 3, 2026

Ophthalmic supply company faces $43M judgment over kickbacks - Minnesota Lawyer

A federal jury recently found that Precision Lens caused the submission of 64,575 false claims to Medicare between 2006 and 2015. While the jury returned a verdict in favor of the United States for more than $43 million dollars, total damages may surpass $800 million.

Precision Lens is a leading distributor of ophthalmic supplies. The company was founded in 1991 by two ophthalmic sales executives including current Precision Lens President Paul Ehlen. For over 30 years, the Bloomington business has supplied a variety of products relating to vision. Some of those products are used in eye surgeries.

However, the jury found eye surgeons were enticed to use Precision Lens’ ophthalmic supplies and equipment in cataract-related surgeries and other procedures covered by Medicare. That enticement came in the form of kickbacks. Precision Lens allegedly maintained a slush fund for the kickback scheme. Funds were used to finance multiple physician trips.

The United States showed that Precision Lens and Ehlen provided physicians with all sorts of kickbacks, including high-end vacations such as hunting, fishing, skiing, golfing, sporting, and entertainment. Some physicians went to Broadway shows in New York, others to the College Football National Championship Game in Miami, and still others to the Masters golf tournament in Augusta, Georgia.

A whistleblower, Kipp Fesenmaier, brought the original lawsuit under the qui tam provisions of the False Claims Act (FCA). In February 2018, U.S....



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