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PENNSYLVANIA RECORD

Thursday, May 2, 2024

Plaintiff: Default judgment should be handed down in third-party Medicare fraud complaint

Federal Court
Medicare44

PHILADELPHIA – The distributor of a pain management microchip says that a third-party defendant should have a default judgment entered against him for failure to respond, in a case centered on alleged Medicare fraud.

Neurosurgical Care, LLC filed a complaint on Dec. 6 in the U.S. District Court for the Eastern District of Pennsylvania against Doc Solutions, LLC and Mark Kaiser.

(Biegler GMBH, Solace Advancement, LLC, James W. Carpenter, Liz O’Neill and unknown corporate and John Doe parties were later added as defendants in an amended version of the complaint filed Feb. 6.)

According to the suit, Doc Solutions’ representative Kaiser presented Stivax, a non-narcotic neurostimulation microchip used to control back, joint and arthritic pain, to Dr. Sagi Kuznits of Neurosurgical Care.

The plaintiff alleged Kaiser “advised” it to bill Medicare and “other government health care payers” using codes that “they knew to be improper.”

Neurosurgical Care claimed it was harmed as a result of using the fraudulent billing codes given to them by Kaiser, and added the office and Kuznits were investigated by the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

On April 14, Doc Solutions, LLC and Kaiser filed a motion for entry of default against third-party defendant Dr. Timothy Warren, in a related third-party action.

“Third-party plaintiffs commenced this third-party action by the filing of a third-party complaint on March 12, which asserted three causes of action against the third-party defendant, Dr. Warren. A Civil Summons was issued against Dr. Warren on March 12. Dr. Warren was served with the civil summons on March 13, 2020 by personal delivery, as shown by the proof of service filed with the court on March 13, 2020,” the motion read.

“Dr. Warren did not agree to waive service under Federal Rule of Civil Procedure 4(d). Pursuant to rule 12(a)(1)(A)(i), the time for Dr. Warren to answer or otherwise plead in response to the third-party complaint expired on April 3. Dr. Warren has not made any appearance in this action or attempted to defend the claims alleged in the third-party complaint. Further, he has not filed any motion to extend time to answer, and the time to respond has expired.”

For counts of fraudulent misrepresentation, negligent misrepresentation, fraudulent concealment and negligence, the plaintiff seeks damages, attorneys’ fees and costs and all other proper relief.

The plaintiff is represented by Simon Bahne Paris, Charles J. Kocher and Patrick Howard of Saltz Mongeluzzi Barrett & Bendesky, in Philadelphia and Horsham.

The defendants are represented by Andrea P. Brockway, Daniel P. Wotherspoon and Justin C. Danilewitz of Saul Ewing; Jeffrey A. Lutsky, Melissa Lynn Perry and William E. Mahoney Jr. of Stradley Ronon Stevens & Young; Carolyn Batz McGee of Cipriani & Werner in Pittsburgh; Oliver Benton Curtis III of McDermott Will & Emery in Miami; and Ryan K. Todd of Nelson Mullin Broad & Cassel in Fort Lauderdale, Fla.

U.S. District Court for the Eastern District of Pennsylvania case 2:19-cv-05751

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com

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