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NeuroMetrix pays $3.7 million in federal kickbacks case

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Nerve test equipment manufacturer NeuroMetrix Inc. paid $3.7 million to settle charges in a federal kickbacks and Medicare fraud case.

Under a deferred prosecution deal with U.S. Attorney Michael Sullivan’s office in Boston and the federal Health and the Inspector General’s office of the federal Health & Human Services Dept., the Waltham-based device maker will pay $1.2 million to settle accusations of illegal kickbacks to physicians and $2.5 million to settle civil charges in that case and another alleged Medicare billing scam.

NeuroMetrix, which did not admit to the charges in the alleged Medicare scheme, pledged to clean up the sales and marketing practices for its NC-Stat neurodiagnostics system, which helps identify pain caused by nerve compression in conditions like carpal tunnel syndrome.

If the company abides by the terms of the three-year deal, the feds will not prosecute the case.
NeuroMetrix president and CEO Shai Gozani said the company is glad to put the two-year kickbacks probe behind it and claimed the years-old marketing campaign involved a fraction of its business, according to a press release.

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