By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law
On July 17, 2026, the U.S. Department of Justice (DOJ) announced that EyePoint Pharmaceuticals, Inc. (EyePoint), agreed to pay $4,657,463.18 (close to $4.7 million) to resolve allegations involving its injectable eye medication, DEXYCU. The Massachusetts-based drug company agreed to the settlement payment in order to resolve allegations of violating the False Claims Act (FCA) and Anti-Kickback Statute (AKS).
DOJ Alleges Pharmaceutical Company Paid Illegal Kickbacks
According to the DOJ, EyePoint allegedly provided improper financial incentives to certain ambulatory surgery centers (ASCs) between January 1, 2019, and March 1, 2023, to encourage them to purchase and dispense DEXYCU.
DEXYCU is an injectable medication approved to treat ocular inflammation following cataract surgery.
Federal prosecutors alleged that EyePoint implemented an Assurance Program that reimbursed or compensated ASCs when insurers denied coverage for DEXYCU or reimbursed the drug below the centers’ acquisition cost. The government also alleged that the company provided excessive quantities of free drug samples to participating ASCs.
Prosecutors contend these practices constituted unlawful remuneration intended to induce providers to purchase and dispense DEXYCU, resulting in false claims submitted to federal health care programs.
Settlement Includes Corporate Integrity Agreement
As part of the resolution, EyePoint agreed to enter into a 5-year Corporate Integrity Agreement with the HHS-OIG. A Corporate Integrity Agreement is a compliance arrangement that imposes ongoing monitoring obligations and provides the government with a mechanism to detect future misconduct.
Under separate agreements, the company will also make additional payments totaling $21, 518.68 to certain participating states.
Whistleblower Case and Settlement Terms
The settlement resolves claims brought under the qui tam, or whistleblower, provisions of the False Claims Act. The lawsuit was filed by AFCE LLC in the US District Court for the District of Massachusetts. Qui tam provisions allow private parties with inside knowledge of fraud against the government to file suit in the government’s name and, if the case results in a recovery, to receive a share of the proceeds. Under the settlement, the whistleblower will receive $791,768.74 from the federal recovery.
This resolution shows how the FCA’s qui tam process can reveal conduct that federal investigators might not discover independently. Here, the conduct involved a reimbursement guarantee presented as a customer service program and a sample distribution policy that allegedly went beyond lawful promotion and became an illegal inducement. The AKS is intended to protect clinicians’ and institutions’ decisions from being influenced by financial deals with manufacturers. Recoveries such as this return improperly obtained funds to the Medicare and Medicaid programs that were allegedly overcharged.
Federal officials also stated that financial incentives like the ones mentioned above may affect decisions about prescribing and dispensing medicines while raising costs for federal health care programs. Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division stated that the department will continue taking action against pharmaceutical companies that use illegal kickbacks to market their products.
Importantly, the DOJ emphasized that the allegations resolved through the settlement were not findings of liability.
Contact Health Law Attorneys Experienced with Qui Tam, Whistleblower Cases, and False Claims Act Violations
Attorneys with The Health Law Firm represent pharmacists, physicians, nurses, health facilities, and other health professionals who need to defend a False Claims Act case, or who desire to file a FCA (whistleblower or qui tam) case. However, the attorneys of The Health Law Firm also defend physicians, medical groups, and health facilities who have been sued in FCA cases or have had administrative or civil complaints filed against them to recover civil monetary penalties. We have developed relationships with recognized experts in health care accounting, health care financing, utilization review, medical review, billing, coding, and other services that assist us in such matters.
To contact The Health Law Firm, please call (407) 331-6620 or toll-free at (888) 331-6620 and visit our website at www.TheHealthLawFirm.com.
Sources:
Muyskens, Carolyn. “Mass. Drug Co. To Pay $4.7M To Resolve Kickback Claims.” Law360. (July 17, 2026). Web.
Sudborough, Susannah. “EyePoint Pharmaceuticals settles kickback allegation.” Boston Business Journal. (July 20, 2026). Web.
U.S. Department of Justice. “EyePoint Pharmaceuticals to Pay $4.6 Million to Resolve False Claims Act Allegations.” Press Release. (July 17, 2026). Web.
About the Author: George F. Indest III, J.D., M.P.A., LL.M., is Board Certified by The Florida Bar in Health Law. He is the President and Managing Partner of The Health Law Firm, which has a national practice. Its main office is in the Orlando, Florida area. www.TheHealthLawFirm.com The Health Law Firm, 1101 Douglas Avenue, Suite 1000, Altamonte Springs, FL 32714, Phone: (407) 331-6620 or toll-free at (888) 331-6620.
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