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Pulmonx Targeted In Federal Fraud Probe
The DOJ is also investigating whether the medical device maker paid illegal kickbacks.
March 15, 2023
Pulmonx Corporation (LUNG), a maker of medical devices that treat chronic obstructive pulmonary diseases, disclosed it received a Civil Investigative Demand (CID) from the Department of Justice (DOJ) in December 2022. The probe aims to determine whether Pulmonx violated the Anti-Kickback Statute and False Claims Act. The company disclosed the probe in its latest annual report and adds:
“The CID requests information and documents regarding our relationships with certain health care providers, medical practices, and hospitals in connection with the sales and marketing of the Zephyr Valves and related products and services.”
Notably, the company did not say it would vigorously defend itself in the event it’s charged in the matter. Instead, the company says it’s “unable to express a view” regarding the outcome of the investigation or estimate an amount or range of reasonably possible loss.
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