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PolyMedica investigated
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August 7, 2001: 4:41 p.m. ET
Company says its Liberty Medical unit is part of U.S. Attorney's investigation
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NEW YORK (CNNfn) - PolyMedica Corp.'s subsidiary Liberty Medical Supply is now the subject of a criminal investigation.
PolyMedica, a distributor of diabetes testing supplies, said Tuesday the U.S. Attorney's office for the Southern District of Florida is conducting a criminal investigation of Liberty Medical.
The company said in a statement it "continues to believe that Liberty operates its business in full compliance with all applicable laws and that the U.S. Attorney's office will reach the same conclusion."
Shares of PolyMedica (PLMD: Research, Estimates) plunged 30 percent Monday on several allegations published in the Aug. 6 issue of Barron's about the company's billing and distribution practices. The Woburn, Mass.-based company denied the allegations.
The allegations against the company include shipping products to customers who did not order them, shipping products to deceased customers, not refunding returned products to Medicare, using computer systems that can be manipulated to generate false orders, loading trucks to generate false order bookings, and booking orders in the incorrect month.
PolyMedica said it would cooperate fully with the investigation.
Shares of PolyMedica fell more than 10 percent on the Nasdaq Tuesday, losing $2.17 to $18.58. 
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PolyMedica
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