A former employee has accused Diabetes Self Care of Medicare fraud of at least $45 million.
The Roanoke, Virginia, company was sold in 2004 to CCS Medical of Florida by its former parent Matria.
Matria is also being investigated by federal authorities.
Diabetes Self Care was a mail-order company, supplying glucose monitors, test strips and other supplies to customers. The whistle-blower claimed that the company had about 65,000 customers in its database, but that another 15,000 people who had died were still being sent supplies. She claims the companies cost taxpayers millions through "fraud, waste, mismanagement and gross negligence."
The Roanoke Times & World News ran a May 4, 2005 story on the suit.