MATRIX, HEALTHFAIR, AND HEALTHFAIR FOUNDER AGREE TO PAY $56.5 MILLION TO RESOLVE FALSE CLAIMS ACT ALLEGATIONS

SHERMAN, Texas, June 3 -- The U.S. Department of Justice's Civil Division issued the following press release:

Community Care Health Network LLC, doing business as Matrix Medical Network (Matrix), DPN USA, doing business as HealthFair (HealthFair), and Shahriah "James" Ekbatani have agreed to pay a total of $56.5 million to resolve allegations that they violated the False Claims Act (FCA) by causing the submission of false or invalid diagnosis codes to the Medicare Advantage program. Matrix will pay $36.5 million to resolve claims in a qui tam action filed in the Southern District of New York. HealthFair, which was acquired by Matrix, will pay $5 million and Ekbatani will pay $15 million to resolve claims in a qui tam action filed in the Ea...