Diabetes Drug Distributed Without Doctors Orders

Jeffrey Newman represented a New Hampshire resident who was sent medicines by mail by medical product companies Liberty Medical Supply and Liberty Home Pharmacy, without permission or authorization from her doctor. A whistleblower claim was filed by Attorney Newman in the name of the United States Government under the False Claims Act (FCA).

Those companies and their parent, Polymedica, a Woburn Massachusetts based company, agreed to pay the United States $35 million to resolve the allegations that they submitted claims to Medicare without proper documentation for diabetic and nebulizer products. The Liberty companies, based in Port St. Lucie Florida, violated the FCA by not obtaining a signed doctor's order or prescription for the products and without first obtaining and maintaining documentation verifying the necessity of treatment volumes in excess of administrative guidelines.

Under the terms of the settlement, Polymedica Corporation and its subsidiaries agreed to comply with a corporate integrity agreement with the Office of the Inspector General. The case was filed by Attorney Newman in the Federal Court in Boston.

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