MiMedx Group Inc. Agrees to Pay $6.5 Million to Resolve False Claims Act Allegations of False Commercial Pricing Disclosures
Seattle Whistleblower Attorneys report that MiMedx Group Inc. (MiMedx), a biopharmaceutical company based in Marietta, Georgia that manufactures and sells human tissue grafts, will pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting false commercial pricing disclosures to the United States Department of Veterans Affairs (VA).
This settlement resolves allegations that MiMedx knowingly submitted false statements and disclosures to the VA regarding MiMedx’s commercial pricing practices, enabling MiMedx to charge the VA inflated prices for its human tissue graft products. Prior to the United States’ disclosure to MiMedx of its investigation, MiMedx made a disclosure to the VA Office of Inspector General regarding its commercial sales practices. In the settlement, the United States acknowledged MiMedx’s cooperation.
The allegations resolved by the settlement were first brought in a lawsuit filed by former MiMedx sales representatives under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States of America ex rel. Jess Kruchoski and Luke Tornquist v. MiMedx Group, Inc., 17-cv-00187 (D. Minn.). As part of this settlement, they will receive $1,625,000 as their share of the government’s recovery.
The claims asserted against this defendant are allegations only, and there has been no determination of liability.
Source: Dept. of Justice
This settlement resolves allegations that MiMedx knowingly submitted false statements and disclosures to the VA regarding MiMedx’s commercial pricing practices, enabling MiMedx to charge the VA inflated prices for its human tissue graft products. Prior to the United States’ disclosure to MiMedx of its investigation, MiMedx made a disclosure to the VA Office of Inspector General regarding its commercial sales practices. In the settlement, the United States acknowledged MiMedx’s cooperation.
The allegations resolved by the settlement were first brought in a lawsuit filed by former MiMedx sales representatives under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States of America ex rel. Jess Kruchoski and Luke Tornquist v. MiMedx Group, Inc., 17-cv-00187 (D. Minn.). As part of this settlement, they will receive $1,625,000 as their share of the government’s recovery.
The claims asserted against this defendant are allegations only, and there has been no determination of liability.
Source: Dept. of Justice