A recent kickback scheme whistleblower lawsuit recently reached a settlement without going to trial. The lawsuit was filed in the U.S. District Court for the District of Minnesota and was initiated by plaintiff Kipp F., a past executive for Midwest Surgical, a company that preceded Sightpath Medical Inc., the named defendant.

This kickback scheme whistleblower lawsuit was set to prove fraud violations by the parent company, TLC Vision Corp, and Sightpath Medical Inc. as instigated by James T., former CEO of the twin organizations. The alleged fraud violations involved luring physicians into business relationships by offering elaborate getaways such as spa, golf, and hunting vacations.

The ultimate aims of these alleged bribing adventures were to get the doctors to purchase medical supplies, products, and services exclusively from Sightpath – all of which would eventually be reimbursed by Medicaid and Medicare.

A kickback scheme whistleblower lawsuit is based upon the False Claims Act (FCA) and its qui tam provision. The FCA is a legal tool by the U.S. Government that allows for prosecution of individuals, contractors, and companies that attempt to present “false claims” against federally funded programs. Every year, the Justice Department catches billions of dollars in fraudulent claims made against federal health programs like Medicare and Medicaid.

The qui tam provision under FCA attempts to reward people who come forward in order to bring those to justice who attempt to defraud the government in such a manner.

In this kickback scheme whistleblower lawsuit, Kipp F., the plaintiff, sued the defendant on behalf of the federal government. The government can choose to participate or not in the litigation. In this case, it did. Mr. F. will be given close to 20% of the recovered funds from the settlement for daring to come forward and bring the allegedly illegal activities to light.

It is important to note that the TLC Vision Corp., Sightpath Medical Inc. and James T. have not admitted liability for any of the accused activities. The defendants have put forth through legal counsel that they wanted to avoid the expense of a trial as well as the detraction from business goals and activities that such a venture would entail.

The $12 million settlement will resolve civil claims against the defendant and recover operating funds for the public insurance programs.

In this kickback scheme whistleblower lawsuit settlement, Sightpath Medical Inc. will also be subject to a five-year accountability agreement with the Office of Inspector General, under the Department of Health and Human Services. They will be expected to constantly adhere to a corporate integrity agreement for this time period.

While it appears that this kickback scheme whistleblower lawsuit has thus ended, Acting U.S. Attorney Gregory Booker has released information that the government is still pursuing legal action against physicians that accepted gifts from James T. and Sightpath Medical Inc. in exchange for product, supplies, and service agreements.

According to Law360, Booker says that they are also pursuing legal action against Precision Lens and its founder, Paul E., who conspired to promote Sightpath’s LASIC and cataract surgery services through enticing California wine country getaways.

The Kickback Scheme Whistleblower Lawsuit is Case No. 13-CV-3003 in the U.S. District Court for the District of Minnesota.