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Competitor’s lawsuit against Tactile Medical can proceed

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[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.”

 

 

 

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