A defendant in a recent blockbuster False Claims Act lawsuit died in a plane crash June 27, shortly after the jury’s verdict. Although his wife, serving as the personal representative for his estate, opposed being substituted as a defendant, the U.S. District Court for Minnesota granted the United States’ motion to do so on Oct. 11.
Precision Lens, founded in 1991 by Paul Ehlen and another ophthalmic sales executive, is a leading distributor of ophthalmic supplies. The business delivered a variety of products relating to vision, some of which were used in eye surgeries. However, the business found itself in hot water after whistleblower Kipp Fesenmaier, who alleged that Precision Lens was involved in a kickback scheme, brought a lawsuit under the qui tam provisions of the False Claims Act (FCA). The United States filed a complaint-in-intervention in 2018.
An investigation revealed that Precision Lens enticed eye surgeons to use their ophthalmic supplies and equipment in cataract-related surgeries and procedures that were covered by Medicare. The company maintained a slush fund to finance multiple physician trips. Some of these lavish trips included going to major sporting events, attending Broadway shows, and participating in outdoor sports.
After a nearly two-month-long trial, a federal jury determined that Precision Lens and Paul Ehlen were jointly liable for causing the submission of 64,575 false claims to Medicare between 2006 and 2015. Ehlen and Precision Lens were...
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