Geico v. Smallville
In Geico v 0123 filed in 2017, Geico claimed that a company that supplied medical equipment advertised via fax that they paid $200 kickbacks to doctors who prescribed a TENS unit. The company wrongfully induced the referral of equipment by attempting to explain the kickback as a “service” without explaining what that means. Geico points out that the supplier bills $795 for the identical product that can be found online for 19.95 from the manufacturer’s website. This is a 3,885% markup.
A copy of the fax is below:
DISCLAIMER
This is based on a real court case that was previously filed against a medical provider/doctor. The case number has been partially redacted and names have been changed to protect the Defendants’ names. This example is posted to help educate others on the laws and potential pitfalls. This posting is not intended to embarrass or defame anyone. I have limited the information and simplified some of the facts in the lawsuit to reflect key points and make a complicated case easier to understand. This “example” is directly from a complaint filed by an insurance company; therefore, I am using the facts THEY presented. There are always two sides to a story so please understand this is just one side of the story. This information was found through records available to the public.