Healthpoint Settles $90M Medicaid Fraud Suit Over Xenaderm

Law360, New York (September 28, 2012, 5:27 PM EDT) -- Healthpoint Ltd. on Friday agreed to settle a whistleblower's False Claims Act allegations it swindled Medicaid out of at least $90 million by improperly billing for bedsore ointment Xenaderm despite the medication's loss of U.S. Food and Drug Administration approval because of perceived ineffectiveness.

Counsel for the Texas company and the federal government, which intervened in the matter along with more than a dozen states, didn’t disclose terms of the deal, which relates to a Healthpoint cream that combines castor oil, an antiseptic called balsam of...
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