Bloomberg Law
May 26, 2023, 2:07 PM

AZ Diabetic Hit With $12 Million Default Judgment for Kickbacks

Daniel Seiden
Daniel Seiden

AZ Diabetic Supply Inc. is liable for $12 million in trebled damages and penalties in the federal government’s False Claims Act suit alleging it submitted payment requests to Medicare that were tainted by kickbacks.

AZ Diabetic failed to retain counsel or file responsive pleadings, Judge Leonie M. Brinkema of the US District Court for the Eastern District of Virginia said in a Thursday opinion granting a motion for default judgment.

The well-pleaded facts of the complaint show that AZ Diabetic submitted 923 claims relating to durable medical equipment prescriptions for Medicare reimbursement that were false because they were made in ...

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