Device Company Settles Vision Test False Claims for $14 Million

Diopsys Inc., a medical device company based in Middletown, Pa., agreed to pay up to $14.25 million to resolve allegations that the company violated the federal False Claims Act and various state laws by knowingly submitting or causing others to submit false claims for payment to Medicare and Medicaid in connection with certain vision testing services, the Justice Department said Friday.

According to DOJ, Diopsys caused health-care providers to submit false claims to Medicare and Medicaid for services in which the company’s NOVA device was utilized for medically unnecessary electroretinography (ERG) vision testing, despite lacking Food and Drug Administration ...