Judge Hits Precision Lens with $487 Million Fine

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A Minnesota federal judge has entered a $487 million judgment against Cameron-Ehlen Group, which does business as Precision Lens, for violations of the False Claims Act and Anti-Kickback Statute. The judgment stems from a jury finding earlier this year that the defendants violated the statutes by paying kickbacks to ophthalmic surgeons to induce their use of the company’s’ products in cataract surgeries reimbursed by Medicare. The jury found that 64,575 false claims were submitted to Medicare due to the illegal conduct, which resulted in $44 million in damages to Medicare.

“Under the False Claims Act (FCA), a person or entity found to have violated the FCA is liable to the United States Government for a minimum civil penalty of $5,000 per false claim and three times the amount of damages sustained by the Government,” a Justice Department release says. The judgment included $356 million in statutory penalties and an additional $131 million in trebled damages, it says.

During the earlier trial, the government identified multiple examples of trips to destinations on private jets that were provided to physicians for using company products. “Companies may not use expensive trips and other items of value to persuade physicians to use their products, and physicians may not accept that remuneration,” the government said.

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