Semler Scientific settles DOJ fraud claims for $29.75 million

Semler Scientific Inc. (NASDAQ: SMLR) entered into a settlement agreement with the U.S. Department of Justice and Department of Health and Human Services to resolve alleged False Claims Act violations related to Medicare Part B submissions for tests using its FloChec and QuantaFlo devices.

The medical device company agreed to pay $29.75 million plus interest at 4.25% per annum from April 28, 2025, within 14 business days, according to the September 10, 2025 settlement agreement. Of the total amount, $5.2 million plus 17.5% of the interest will be paid to relators who brought the case. The company will also pay $390,000 for relators' attorneys' fees and costs within seven business days.

Semler Scientific did not admit wrongdoing in connection with the allegations as part of the settlement agreement. Upon payment of the settlement amount, the company will be released from civil or administrative monetary claims related to the covered conduct, subject to certain exceptions.

The company plans to fund the settlement using cash from operations and proceeds from its at-the-market equity offering program. It may also borrow under its Master Loan Agreement with Coinbase Credit Inc. and Coinbase Inc.

As part of the agreement, Semler Scientific entered into a corporate integrity agreement with the HHS Office of Inspector General. The five-year agreement requires the company to implement compliance measures related to its sales practices and provide regular reporting to the inspector general's office.

You May Also Be Interested In

• MUFG Bank and JCB sign ASEAN strategic alliance MOU
• Freedom Broker Starts Unity Bancorp (UNTY) at Hold
• Trump: 40-60% of chip manufacturing will be in the U.S. - CNBC Interview