Whistleblower Kristie Rudolph filed a whistleblower lawsuit under the California Insurance Frauds Prevention Act in 2016 alleging that her former employer, Essilor Laboratories of America, Inc., alleging that Essilor provided unlawful kickbacks to eye care providers in exchange for business from those providers. These kinds of unlawful incentives, which drive up the costs of insurance for all Californians, are illegal under California law. The California Insurance Frauds Prevention Act, California Insurance Code sec. 1871.7, allows individuals like Ms. Rudolph to file a qui tam lawsuit against anyone who commits insurance fraud in the State of California. Ms. Rudolph was represented in this case by Baron & Budd, P.C. The Weiser Law Firm and Keller Grover LLP.
The California Department of Insurance intervened in Ms. Rudolph’s case in 2021 after an extensive investigation. The California Department of Insurance, together with Ms. Rudolph’s legal team, successfully opposed Essilor’s efforts to knock the case out. The parties subsequently agreed to a settlement in November 2022 under which Essilor agreed to pay $23.8 million to resolve the case.