CVR pays $4M FCA settlement for unnecessary procedures

April 3, 2026

Center for Vein Restoration Enters Into $4M False Claims Act Settlement With States and Federal Government

Matthew Berns, Jessica Birdsong, Christopher Carlson, Lauren Morgan Fincher, Samuel Fishel, Clayton Friedman, Sydney Goldberg, Nick Gouverneur, Troy Homesley, Jeff Johnson, Namrata Kang, Stephanie Kozol, Michael Lafleur, William LaRosa, Warren Jay Myers, Philip Nickerson, Lane Page, Dascher Pasco, Stephen Piepgrass, Kyara Rivera Rivera, Zoe Schloss, Timothy Shyu, Trey Smith, Ashley Taylor Jr., Daniel Waltz, Michael Yaghi Troutman Pepper Locke + Follow Contact LinkedIn Facebook X Send Embed

Connecticut Attorney General (AG) William Tong announced on March 20, 2026, that Connecticut has joined with other states and the federal government to reach a settlement with CVR Management, LLC, the entity that manages the Center for Vein Restoration (CVR), resolving allegations that the company billed government health programs for medically unnecessary procedures. The settlement requires CVR Management to pay $4 million, which will be distributed among the Medicaid programs of eight states, the District of Columbia, the federal government, and the relators of the original lawsuits.

This settlement arises from two qui tam actions filed in the U.S. District Courts for the District of Maryland (2015) and for the Eastern District of Pennsylvania (2018), which were later consolidated in Maryland. CVR provides care for chronic venous insufficiency, including sclerotherapy, radiofrequency ablation, and endovenous laser ablation. The settlement resolves allegations that CVR fraudulently billed government health programs, including Medicare, Medicaid, and TRICARE, for procedures that were not clinically indicated or medically necessary.

Both the Connecticut press release and the U.S. Attorney’s Office for the District of Maryland press release emphasize that the procedures provided by CVR are only covered by federal programs when chronic venous insufficiency is accompanied by other specific conditions and when alternative treatments have been unsuccessful. The federal programs do not cover the treatment of varicose veins for purely cosmetic reasons, and the settlement alleges that “CVR knowingly billed….[for] procedures that were not clinically indicated and were medically unnecessary.”

Tong emphasized that he will continue to partner with other states and federal programs “to aggressively protect the integrity of our public healthcare programs.”

This settlement underscores the continued focus of the federal and state governments on health care billing practices, medical necessity determinations, and enforcement actions under the False Claims Act. Additionally, organizations like CVR that practice in multiple jurisdictions and bill to various government programs should be aware that coordinated investigations like this one can result in simultaneous exposure with both the federal and state enforcement authorities, including state AGs.

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