On July 14, 2026, the Department of Justice announced that it had reached a $550,959 settlement with Tactile Systems Technology, Inc. (“Tactile”), to resolve allegations from whistleblowers that Tactile submitted claims to Medicare seeking reimbursement for medically unnecessary pneumatic compression devices, which are used to treat lymphedema and chronic venous insufficiency. Gregg Shapiro represented the first whistleblower to file suit against Tactile.
Gregg’s client, a former Tactile employee, filed his complaint in May 2021 after observing that, with apparent encouragement from Tactile managers, his Tactile colleagues were altering and fabricating medical records to make it appear that Tactile pneumatic compression devices were medically necessary, when in fact federal medical necessity requirements had not been satisfied.
In the settlement, Tactile admitted, among other things, that:
- “certain Tactile sales personnel fabricated and/or amended [healthcare professionals’] medical records and other clinical documentation that Tactile required the sales personnel to collect and retain to support claims for payment for Tactile devices. These Tactile sales personnel inserted false statements about a patients’ failure to experience relief through basic compression therapy and/or forged the signature of HCPs on doctored medical records and other clinical documentation to make it appear as though the HCPs had prescribed the [Tactile devices];” and
- “certain Tactile sales personnel fabricated and/or amended HCPs’ medical records and other clinical documentation to falsely state that patients did not experience a sufficient reduction in swelling using [Tactile’s basic pneumatic compression device] and benefited more from a trial of [Tactile’s] more expensive [advanced pneumatic compression device].”
The settlement agreement further noted that, prior to the agreement, Tactile had “voluntarily repaid Medicare for certain claims Tactile deemed to be for medically unnecessary [pneumatic compression devices].” These repayments reduced the settlement amount.
Gregg Shapiro thanks Assistant United States Attorneys Steven Sharobem and Abraham George and Investigator Samantha Martin for their work investigating and settling this case.
Under the federal False Claims Act, whistleblowers are entitled to between 15 and 30 percent of the money recovered by the government for fraud committed against the government.
Attorney Jeff Newman originated this case.