AmMed Pays US, Tenn. $18M To Settle Medicare Fraud Suit

Law360, New York (April 13, 2012, 3:16 PM EDT) -- Diabetes supply company AmMed Direct LLC reached an $18 million settlement with the U.S. and the state of Tennessee on Friday in a whistleblower suit brought by a former employee claiming the company illegally hawked its products to Medicare patients.

The federal government and Tennessee intervened in the False Claims Act suit Thursday for purposes of completing the settlement. The U.S. will receive $17.6 million, and Tennessee will receive $439,000.

Bryan McNeese, a former sales associate at Antioch, Tenn.-based AmMed, brought the suit in Tennessee federal...
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