A 2023 court case saw a jury rule that Precision Lens violated the False Claims Act and the Anti-Kickback Statute by paying "kickbacks" to ophthalmic surgeons to push the use of Precision Lens products in cataract surgeries reimbursed by Medicare.
Precision Lens incentivized these physicians in the form of travel and luxury entertainment, including "high-end ski trips, fishing, golfing, hunting, sporting, and entertainment vacations, often at exclusive destinations."
Many of these trips included being flown by private jet to places such as New York City to see a Broadway musical and the College Football National Championship Game in Miami, Florida.
Precision Lens also sold flyer miles to its physician customers at a large discount, which let physicians take trips at below market value.
The jury found that this conduct resulted in $43,694,641.71 in fraudulent claims submitted to Medicare. The court first entered a $487 million judgment against the company and its owner, though this was reduced to $216.5 million following post-trial motions.
However, after federal officials reviewed the company's and estates’ financial position and ability to pay the full balance, both parties entered a settlement agreement which requires Precision Lens and the estate to immediately pay $12 million.
The U.S. Attorney's Office of Minnesota says that it will have collected nearly $27 million by the end of this case.
But in a statement to the Star Tribune , an attorney for Precision Lens accused the DOJ of pursuing an "unjust and irresponsible lawsuit" against the company, saying its "abusive actions destroyed a successful business and more than 50 good jobs."
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