In a bid to mitigate the fallout, Stimwave entered into a nonprosecution agreement with the government, agreeing to a hefty $10 million penalty. A significant portion of this sum, $8.6 million, was allocated to settle a related False Claims Act lawsuit.
Bankruptcy and Redemption
The repercussions of Perryman’s actions were seismic, plunging Stimwave into financial turmoil. The company, once heralded for its innovative potential, succumbed to the weight of its tarnished reputation. Forced to seek refuge in bankruptcy court, Stimwave embarked on a journey of redemption, striving to rectify its internal practices.
In a pivotal turn of events, Stimwave garnered approval from the bankruptcy court for a $124 million acquisition by an affiliate of Kennedy Lewis Investment Management LLC. This acquisition marked a new chapter for the beleaguered company, offering a glimmer of hope amidst the darkness of scandal and deception.
Ex-Stimwave CEO Found Guilty Of Healthcare Fraud : Legal Prowess on Display
Throughout the legal saga, formidable legal teams sparred in the courtroom. Representing the government were Mónica Folch, Jacob Bergman, Steven Kochevar, and Kimberly Ravener of the U.S. Attorney’s Office for the Southern District of New York. Perryman, on the other hand, was represented by Derek Cohen, Sean Haran, Johnson Lin, and Jennifer Berger of Walden Macht & Haran LLP.
