Precision Lens FCA Case Settled For $12 Million

As previously promised, we wanted to update our readers on a February 2024 decision by the U.S. District Court for the District of Minnesota to slash a $487 million judgment against Precision Lens and the estate of its former principal, the late Paul Ehlen, following a jury verdict of False Claims Act (FCA) liability based on violations of the Anti-Kickback Statute. In resolving post-judgment motions, the court revised the final judgment down to $217 million, holding that the total FCA treble damages and civil penalties assessed were unconstitutional under the Eighth Amendment's Excessive Fines Clause.

At the time, we noted that "[w]hether either side will appeal is uncertain, particularly given evidence suggesting that 'neither Precision Lens nor Paul Ehlen's estate will be able to satisfy even the compensatory damages in this matter.'" In April 2024, the U.S. Attorney's Office filed a notice of appeal. However, on July 25, 2024, the Department of Justice (DOJ)