United States Attorney for the Western District of Wisconsin, announced today that Pharmasan Labs, Inc. and NeuroScience, Inc., along with their two founders, have agreed to pay $8.5 million to the United States to resolve False Claims Act allegations in case brought by a former billing manager for Pharmasan under the qui tam whistleblower provisions of the False Claims Act. The government contended that Pharmasan falsely billed Medicare for ineligible food sensitivity testing for nearly five years, knowing that Medicare prohibited payment for food sensitivity testing, and that Pharmasan employees submitted false information to Medicare disguising the type of test that it was performing so that Medicare would pay for the services. In addition, Pharmasan submitted claims for laboratory services knowing that Medicare billing rules prohibit payment for services referred by non-physician practitioners.  A large portion of Pharmasan’s referrals came from non-physician practitioners. The whistleblower will receive an award of $1.1M.