Drug company to pay $4.7M after admitting it paid providers to use its product
A whistleblower flagged the arrangement in 2021. Five years later, the company is paying nearly $4.7 million to resolve those claims.
Chloe Mitchell 
A Watertown-based pharmaceutical company is facing the consequences of a years-long kickback scheme. Following a whistleblower report initiated in 2021, EyePoint Pharmaceuticals has agreed to a $4.7 million settlement to resolve allegations that it illegally incentivized providers to utilize its products.
The Breakdown of the Scheme
According to federal prosecutors and a settlement agreement released Friday, the company engaged in illicit activity between January 2019 and March 2023. The Massachusetts U.S. Attorney’s Office detailed that the firm used two distinct kickback strategies targeting ambulatory surgery centers (ASCs) to boost sales of DEXYCU, a steroid used during eye surgeries.
EyePoint admitted to operating an “Assurance Program” that shielded ASCs from financial loss. If federal insurance programs denied a claim for the drug, the company would provide cash or free replacement medication to the clinics. Furthermore, the company distributed thousands of free samples for use on patients with private insurance coverage, a move designed to encourage continued purchasing of the drug for patients covered by federal programs.
Legal Consequences
These actions were found to be in violation of the False Claims Act and the Anti-Kickback Statute, which prohibits offering value to influence the use of products covered by federal health care programs. Assistant Attorney General Brett Shumate noted that such schemes drive up costs for patients and federal programs, while U.S. Department of Health and Human Services official Roberto Coviello emphasized that the company compromised patient-centered decision-making in favor of corporate profits.
The final settlement figure of approximately $4.67 million—which accounts for interest accrued since January 2026—will see $4.65 million directed to the federal government, with the remaining balance divided among participating states. Beyond the financial penalty, the settlement mandates a five-year Corporate Integrity Agreement with the HHS-OIG.
Company Response
In a statement regarding the resolution, EyePoint Pharmaceuticals noted that the settlement concerns past marketing practices and confirmed they no longer sell DEXYCU. The company stated it has moved to enhance its compliance-related practices and remains focused on maintaining high ethical standards as it continues its work with the retina community.
