Healthpoint to Pay up to $48 Million for False Medicare and Medicaid Claims

Healthpoint Ltd. and DFB Pharmaceuticals have agreed to pay up to $48 million to resolve allegations that Healthpoint caused false claims to be submitted to Medicare and Medicaid programs for a non-FDA approved skin ointment, Xenaderm.  The U.S. Department of Justice alleges that Healthpoint misrepresented Xenaderm’s regulatory status in its government reports and knowingly caused false claims to be submitted for the product.

The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties with knowledge of fraud to sue on behalf of the United States and share in any recovery.   This settlement is part of a series of recoveries totaling over $100 million from manufacturers of unapproved drugs.   The relator, or whistleblower, Ms. Constance Conrad, is eligible to recover 15% to 30% of the settlement, however, an agreement between the government and Ms. Conrand regarding her award has not been reached yet.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.