The DOJ announced that ASD Specialty Healthcare LLC (“ASD”), a specialty healthcare distribution company headquartered in Carrollton, Texas, has agreed to pay $1.67 million to resolve allegations of violating the Anti-Kickback Statute (“AKS”) and the False Claims Act (“FCA”). ASD, which does business as Besse Medical, allegedly provided inventory management systems to retina practices to induce the purchase of Besse drugs in violation of the AKS.
From May 2017 through November 2023, ASD allegedly offered PODIS, an inventory management system, to certain customers at no cost. Generally, the customers offered the free inventory management system purchased Wet AMD drugs from ASD and became customers of ASD. Wet AMD drugs are used to treat age-related macular degeneration that can lead to vision loss. The government alleged that the foregoing scheme caused physicians to submit AKS-tainted claims to Medicare, TRICARE, and the Department of Veterans Affairs in violation of the FCA. The AKS prohibits the exchange of any remuneration to induce the purchase of drugs paid for by the government healthcare programs.
This matter was initially brought under the qui tam provisions of the FCA by Julianne Nunnelly and Matthew Shanks who were former employees of Regeneron Pharmaceuticals Inc., which also manufactured Wet AMD drugs. Ms. Nunnelly and Mr. Shanks also initiated a qui tam matter against Regeneron and the government intervened in March 2024. The Relators will receive $250,705.20 from the settlement agreement. Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services Office of Inspector General commented that “[w]e are committed to pursuing allegations of kickbacks and false claims as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act investigations and litigation. If you need assistance with such a matter, please contact us today.