Biotech Companies, Co-Founder End $10 Million False Claim Suit

Biotechnology companies iSense, LLC and Specific Diagnostics, Inc. as well as Dr. Paul Andrew Rhodes, their co-founder, will pay more than $10 million to resolve allegations of improperly billing to federal grants, the Justice Department said Wednesday.

The settlement resolves allegations that the firms billed costs incurred by another business and for compensation exceeding federal limits as well as allegations of backdating services and cost-sharing agreements and knowingly presenting a backdated agreement to the United States, the department said.

Specific and iSense will each pay for $4,000,000, and Dr. Rhodes will pay $2,068,875, according to the department. The claims resolved ...