United States Files False Claims Act Complaint Against Arriva Medical, LLC, Alere, Inc., And Consultant

NASHVILLE, Tenn.  – May 14, 2019 - The United States has filed a complaint under the False Claims Act against Arriva Medical, LLC (“Arriva”), its parent Alere, Inc. (“Alere”), and Ted Albin, of Stuart, Florida, a reimbursement consultant for Arriva and Alere, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.  The complaint alleges that the defendants submitted or caused false claims to be submitted to the Medicare program for medically unnecessary glucometers and paid kickbacks to Medicare beneficiaries in the form of free glucometers and waivers of their copayments.  The complaint also alleges that Arriva submitted false claims to the Medicare program for diabetic testing services shipped to deceased beneficiaries.  

On February 19, 2019, the United States filed a notice of intervention in an action against Arriva and Alere that was commenced under the qui tam or whistleblower provisions of the False Claims Act.  The notice informed the court that the United States intended to file a complaint against Arriva, Alere, and Albin. 

Subsequently, on April 24, 2019, David Wallace and Timothy Stocksdale, the founders of Arriva who also worked as executives for Arriva for two years after its purchase by Alere, agreed to pay $500,000 each to settle False Claims Act allegations for their role in the alleged conduct. 

This case is being handled by the United States Attorney’s Office for the Middle District of Tennessee and the Justice Department’s Civil Division, with assistance from the Office of the Inspector General of the Department of Health and Human Services and the Tennessee Bureau of Investigation.  Assistant U.S. Attorney Ellen Bowden McIntyre and Trial Attorney Jake M. Shields of the Civil Division represent the United States. 

The claims in which the United States has intervened are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rel. Goodman v. Arriva Medical LLC; Alere, Inc., Case No. 3:13-cv-00760 (M.D. Tenn.).

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