NeuroMetrix settles investigation with $3.7m costs
This article was originally published in Clinica
Executive Summary
NeuroMetrix has agreed to pay $3.7m in order to settle a legal dispute over the sales and marketing of one its diagnostic tests for nerve conditions. The US Department of Justice (DOJ) and the Office of Inspector General (OIG) of the US Department of Health and Human Services alleged that NeuroMetrix offered payments to physicians to promote the use of its NC-stat system. The Waltham, Massachusetts-based company agreed to pay a $1.2m criminal penalty and observe the terms of a three-year deferred prosecution deal in return for the DoJ dropping the charges. In addition, the firm has paid $2.5m to settle further allegations that it had caused doctors to improperly bill the government for higher reimbursement payments. NeuroMetrix, which has not admitted to any of the billing charges, has entered into a five-year Corporate Integrity Agreement with the OIG as part of the settlement.
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