U.S. cracks down on EyePoint over alleged kickbacks, company to pay $4.66 million settlement

Eyepoint Pharmaceuticals, headquartered in Massachusetts, has agreed to pay the United States $ 4,657,463.18 to resolve allegations that it violated the False Claims Act by paying kickbacks to certain Ambulatory Service Centres (ASCs) to induce those ASCs to purchase and dispense DEXYCU, an injectable drug approved for the treatment of ocular inflammation following cataract surgery, between January 1, 2019 and March 1, 2023.
The United States alleges that following the commercial launch of DEXYCU in 2019, EyePoint induced ASCs to purchase and dispense DEXYCU by implementing an Assurance Program—whereunder EyePoint would reimburse or compensate ASCs if health insurers denied a claim for DEXYCU or reimbursed DEXYCU below the ASCs’ purchase cost—and by offering excessive free samples of DEXYCU to ASCs.
Kickbacks by pharmaceutical companies increased the cost of drugs used by patients and paid for by federal health care programs, said assistant attorney general Brett Shumate of the Justice Department’s Civil Division.
In connection with the settlement, EyePoint entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General.
Through separate agreements, EyePoint will pay an additional $21,518.68 to certain participating states.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by AFCE LLC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.
The qui tam case is captioned U.S. ex rel. AFCE LLC, et al., v. EyePoint Pharmaceuticals, Inc., No. 21-CV-12071 (D. Mass.) Under the resolution, the Relator will receive $791,768.74 from the settlement.
“As we have for years, our Office will continue to hold pharmaceutical manufacturers accountable for paying illegal kickbacks,” noted U.S. attorney Leah Foley.
Pharmaceutical companies that “attempt to boost profits through unlawful kickbacks undermine the integrity of federal health care programmes and betray the patients who rely on them,” acting deputy inspector-general for investigations Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) pointed and vowed that the agency would “aggressively pursue any entity that seeks to corrupt medical decision-making and will not hesitate to hold them accountable”.
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”

Showbiz
Davido’s buddy Mayorkun marks 10 years in music
The singer announced the milestone on Monday on X, sharing photographs alongside a brief message on the social media platform.

Education
NELFUND pays June, July students’ allowances in Borno, Yobe, Adamawa
NELFUND has paid the monthly upkeep allowances to most students of four higher institutions in Borno, Yobe and Adamawa.

Anti-Corruption
Afeez Adewale jailed for wire fraud, sextortion tied to death of U.S. citizen
Internet fraudster Afeez Adewale has been sentenced to five years in prison for money laundering conspiracy and wire fraud.

World
I will challenge Trump to defend UK interests, Andy Burnham declares
Prime Minister Andy Burnham says he will call out President Donald Trump if defending the United Kingdom’s national interests requires it.

Rights
Tinubu to increase soldiers’ salary from N100,000 soon, says defence minister
“I am confident that very soon, Mr President will announce another salary increase for our men,” the defence minister said.

Anti-Corruption
U.S. cracks down on EyePoint over alleged kickbacks, company to pay $4.66 million settlement
Eyepoint Pharmaceuticals, headquartered in Massachusetts, has agreed to pay the United States $ 4,657,463.18 to resolve allegations that it violated the False Claims Act.





