Whistleblower Helps DOJ Settle Biopharmaceutical Company False Claims Act Charges of False Commercial Billing Practices for $6.5 Million

The US District of Justice announced on April 6, 2020, that MiMedx Group Inc. (MiMedx) is based in Georgia made and sold human tissue grafts. The payment settles a claim brough by a whistleblower under the qui tam provisions of the False Claims act. The whistleblower was a sales representative. The False Claims Act permits private individuals the right to file claims under the False Claims Act. If the claims are successful, the whistleblower is entitled to a percentage of the recovery.

In this case, the whistleblower was awarded $1.625 million for filing the successful claim.

The False Claims Act law requires that anyone who submits bills or contracts with the US government must submit fair and honest bills based on valid prices. In this case, MiMedx was charged with submitting “false settlements and disclosures to the Department of Veterans Affairs regarding it commercial pricing practices.” These dishonest practices enabled MiMedx to inflate the prices it charged the VA.

Billing for medical products at prices more than they should is a dishonest practice that harms the US government which makes payments, harms honest competitors, and harms the public. As the Inspector General for the US VA department added, – veterans “deserve the best healthcare products and services available.

MiMedx did ultimately disclose to the Office of Inspector General for the VA Office its commercial sales practices.

The California Law Offices of Stephen A. Danz and Associates, for close to 40 years, has been fighting for the rights of employees and workers – including those who step forward to courageously disclose governmental fraud. We help whistleblowers prepare their disclosure statements with supporting evidence to increase the likelihood the US DOJ will accept their case or that the case can proceed if the DJO doesn’t intervene. For help with any False Claims Act case, call us at 877-789-9707 or fill out our online contact form. Se habla espanol.