Precision Lens, a Bloomington, Minn.-based seller of eye surgery products, and the estate of Paul Ehlen, its former majority owner, will pay $12 million to resolve allegations it paid kickbacks to ophthalmic surgeons.
The kickbacks, which included luxury hunting, fishing and sporting outings, were used to sway surgeons into using Precision Lens products, according to a July 25 news release from the Justice Department. These kickbacks caused the submission of 64,575 false claims to the Medicare program between 2006 and 2015.
In February 2023, Precision Lens was found guilty of violating the False Claims Act by paying kickbacks to ophthalmic surgeons to use Precision Lens products in cataract surgeries reimbursed by Medicare.
In March 2023, a jury found that Precision Lens's conduct resulted in $43.7 million in fraudulent claims, and the court entered a $487 million judgment against the company and its owner. The court reduced the judgment to $216.7 million following post-trial motions, and, after the DOJ conducted a review of the defendants' ability to satisfy the judgment, the parties entered a settlement to immediately pay $12 million to resolve the claims.