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ASD Specialty Healthcare LLC Fined $1.67M for Kickbacks, Carrollton TX, 2024
A pharmaceutical distributor in Texas has agreed to pay $1.67 million to resolve allegations that it violated the Anti-Kickback Statute and False Claims Act.
ASD Specialty Healthcare LLC, doing business as Besse Medical, allegedly provided inventory management systems to retina practices at no cost to induce them to purchase drugs from the company.
The company, headquartered in Carrollton, Texas, distributes specialty medical and pharmaceutical products nationwide, including ophthalmological injections that treat neovascular age-related macular degeneration (wet AMD).
As part of the settlement agreement, ASD admits that it acquired a commercially available inventory management system, known as PODIS, in May 2017. Through November 2023, ASD offered PODIS at no cost to customers who met certain purchase requirements, including that they purchase branded Wet AMD drugs from ASD and convert to an ASD customer if not a current customer.
The government alleges that ASD caused physicians to submit false claims to Medicare, TRICARE and the Department of Veterans Affairs induced by these kickbacks.
“According to the allegations in today’s settlement, ASD purchased a commercially available product and leveraged it to gain business in violation of the AKS,” said Principal Deputy Assistant Attorney General Brian M. Boynton. “We will pursue kickbacks at all levels of the distribution chain to preserve the integrity of federal health care programs.”
The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Julianne Nunnelly and Matthew Shanks, former employees of Regeneron Pharmaceuticals Inc.
Ms. Nunnelly and Mr. Shanks are entitled to a share of the settlement amount under the FCA’s whistleblower provisions.
Key Facts
- State: Texas
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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