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Home » Competitor’s lawsuit against Tactile Medical can proceed

Competitor’s lawsuit against Tactile Medical can proceed

February 25, 2020 By Chris Newmarker

judge gavel lawsuit medtech medical device Abbott
[Image from Unsplash]
A U.S. District Court judge in southern Texas has denied a motion from Tactile Medical (NSDQ: TCMD) to dismiss a competitor’s qui tam complaint.

Veterans First Medical Supply (Houston) claimed in its lawsuit filed in early 2019 that Tactile is defrauding Medicare and Medicaid because it contracts with hundreds of clinicians to provide at-home setup of its pneumatic compression devices to treat chronic swelling conditions. The same clinicians work for facilities that prescribe the treatments.

Tactile in its motion to dismiss countered that the clinicians it contracts with don’t have purchasing authority at the healthcare facilities where they work. It denied that any compensation or reimbursements made to the contractors or other physicians providing advisory services were improper.

The U.S. government declined to intervene in the case.

“We are disappointed that our motion to dismiss was denied and we will continue to defend ourselves against these allegations as the litigation moves forward,” Tactile Medical CEO Gerald R. Mattys said in a news release posted yesterday.

“The judge’s decision was in no way an indication of wrongdoing on our behalf, or a validation of the merits of the allegations; it merely represents a determination that there was sufficient information in the complaint to move to the next step in the process,” Mattys said. “We are now working expeditiously to respond to the complaint formally and will continue to update the investment community of material developments in the litigation process going forward.”

 

 

 

Filed Under: Legal News, Medicare, News Well Tagged With: Tactile Systems Technology, Veterans First Medical Supply

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About Chris Newmarker

Chris Newmarker is the executive editor of WTWH Media life science's news websites and publications including MassDevice, Medical Design & Outsourcing and more. A professional journalist of 18 years, he is a veteran of UBM (now Informa) and The Associated Press whose career has taken him from Ohio to Virginia, New Jersey and, most recently, Minnesota. He’s covered a wide variety of subjects, but his focus over the past decade has been business and technology. He holds bachelor’s degrees in journalism and political science from Ohio State University. Connect with him on LinkedIn or email at [email protected].

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