DOJ Sues Healthpoint Over Zenaderm Marketing

Law360, New York (April 1, 2011, 7:13 PM EDT) -- The U.S. Department of Justice on Thursday accused Healthpoint Ltd. of falsely marketing the bedsore ointment Xenaderm as a prescription drug qualifying for Medicare and Medicaid reimbursement, causing the agencies to pay $90 million for an ineligible drug.

The complaint filed in the U.S. District Court for the District of Massachusetts alleges that Healthpoint violated the False Claims Act by submitting false statements regarding the eligibility of federal reimbursement for the drug Xenaderm to the Centers for Medicare and Medicaid Services.

Texas-based Healthpoint began marketing the...
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