The Department of Justice (DOJ) has intervened in a Nolan & Auerbach, P.A. qui tam suit against Xenaderm maker, DFB Pharmaceuticals, alleging the marketing company Healthpoint (owned by DFB) knowingly promoted and sold the drug under the premise that it could be billed to Medicare and Medicaid. Xenaderm, a drug used for burns and wounds in the removal of dead tissue, was found in a 1972 DESI review to be ineffective.
That allegedly didn’t stop Healthpoint from continuing to manufacture and market Xenaderm. The DOJ claims the total cost to Medicaid from this fraud exceeds $90 million.
For more information about qui tam law and pharmaceutical fraud, contact Nolan and Auerbach, P.A.