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NEW YORK (360Dx) – Two former executives of Arriva Medical have agreed to pay $1 million to settle allegations that they had engaged in diabetic testing supply fraud in violation of the False Claims Act.

Don Cochran, US Attorney for the Middle District of Tennessee, announced Wednesday that Arriva cofounders David Wallace and Timothy Stocksdale will pay $500,000 each to settle claims by the US Department of Justice that they had caused the company to submit false claims to Medicare and to bill Medicare for medically unnecessary home blood glucose meters.

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