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Prosecutors: Medical supply company to pay $1.8M for fraud

SOUTHAVEN — Federal prosecutors say a medical supply company from Mississippi will pay almost $1.8 million to end fraud claims in Alabama.

A settlement was filed in Birmingham, Ala., in a lawsuit involving Pinnacle Medical Solutions of Southhaven.

A statement from the office of U.S. Attorney Joyce Vance says two employees filed a whistleblower complaint in 2009 accusing Pinnacle Medical of submitting false claims to Medicare and the Federal Employees Health Benefits Program. The claims were for glucose monitoring strips and lancets.

A federal investigation already has resulted in the company refunding $236,204 to Medicare. The settlement adds to the amount of repayment.

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