EX-MiMEDX EMPLOYEES ALLEGE MiMEDX "PRESSURE[D] HEALTHCARE PROVIDERS TO TREAT WOUNDED VETERANS, DIABETICS, CHRONIC WOUND SUFFERERS, AND OTHER PATIENTS WITH MEDICALLY UNNECESSARY OR UNSUITABLE PRODUCTS"

Rhea-AI Summary

Ten former employees of MiMedx Group (NASDAQ: MDXG) have filed counterclaims against the company in response to a non-compete lawsuit. The counterclaims allege that MiMedx engaged in schemes to defraud Medicare and pressured healthcare providers to use medically unnecessary products on vulnerable patients. The former employees claim they were forced to leave due to MiMedx's alleged wrongdoing, including attempts to sell products without proper FDA approval.

The counterclaims reference a December 20, 2023 FDA warning letter to MiMedx's CEO regarding the AXIOFILL product. Employees allege that MiMedx's lack of transparency about this issue led them to seek employment elsewhere. The legal action, filed by attorneys at Mintz and Fellows Labriola, portrays MiMedx's original lawsuit as an intimidation tactic against whistleblowers.

Positive

• None.

Negative

• Ten former employees filed counterclaims against MiMedx, alleging fraudulent practices
• Accusations of pressuring healthcare providers to use medically unnecessary products on vulnerable patients
• Claims of schemes to defraud Medicare and other government payers
• Allegations of selling products without proper FDA approval
• FDA warning letter issued on December 20, 2023, regarding the AXIOFILL product
• Potential legal and regulatory risks due to alleged misconduct
• Possible damage to company reputation and customer trust

10 Former MiMedx Employees In Non-Compete Suit Fight Back Against MiMedx Schemes to "Bilk Medicare" and "Incentivize Fraud" in Counterclaims Filed by Mintz Attorneys

MARIETTA, Ga., Sept. 11, 2024 /PRNewswire/ -- 10 former employees of MiMedx Group, Inc. (NASDAQ: MDXG) have now filed counterclaims against the placental biologics company in response to a non-compete lawsuit filed by MiMedx earlier this year.  Among other allegations, the employee countersuits assert that in some cases that MiMedx engaged in "schemes to bilk Medicare and other government and third-party taxpayers" and that "MiMedx tried to compel its employees to continue selling a product that the U.S. Food and Drug Administration determined could not lawfully be marketed without prior FDA approval."  The filings describe the MiMedx suit as a "blatant intimidation tactic" against former employees who were "forced to leave" MiMedx as a result of its alleged wrongdoing.

Specifically, the counterclaims allege that MiMedx "pressure[d] healthcare providers to treat wounded veterans, diabetics, chronic wound sufferers, and other patients with medically unnecessary or unsuitable products—all to the detriment of patients "that are amongst the most vulnerable populations". Key filings also allege that MiMedx "engaged in and has directed members of its sales team including [the defendants] to engage in, predatory sales practices aimed at increasing its revenue by incentivizing fraud on the United States government, including Medicare fraud."

Some of the claims reference a warning letter issued by the FDA to MiMedx's CEO, Joseph H. Capper, concerning its AXIOFILL product on December 20, 2023, and assert that former employees believed "that the company had wasted the sales team's time claiming that there were no issues regarding AxioFill" even after receiving the letter, and that MiMedx's "lack of communication and transparency" regarding the facts were disturbing and led to them seeking employment elsewhere.

The claims filed by the former employees' attorneys at Mintz and Fellows Labriola allege that the employees left MiMedx after "MiMedx tried to compel its employees to continue selling a product that the U.S. Food and Drug Administration ('FDA') determined could not lawfully be marketed without prior FDA approval."

Today's counterclaims come on the heels of complaints filed last month on behalf of ex-MiMedx employees.  To read the LATEST claims please click below.

To read Logan Richard's claims, click [HERE] 

To read Judi Polacri's claims, click [HERE]

To read Eidrian Garcia's claims, click :[HERE]

To read London Barber's claims, click [HERE]

To read Parker Taylor's claims, click [HERE]

To read Cole Pearson's claims, click [HERE]

To read Claudia Nguyen's claims,click [HERE]

To read the PREVIOUS claims please click below.

Jacob Heikkinen 

Caralyn Gargan

Lara Whooley

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ex-mimedx-employees-allege--mimedx-pressured-healthcare-providers-to-treat-wounded-veterans-diabetics-chronic-wound-sufferers-and-other-patients-with-medically-unnecessary-or-unsuitable-products-302245440.html

SOURCE Mintz Levin

FAQ

What allegations have former MiMedx employees made against the company?

Former MiMedx employees have alleged that the company engaged in schemes to defraud Medicare, pressured healthcare providers to use medically unnecessary products on vulnerable patients, and attempted to sell products without proper FDA approval.

When did the FDA issue a warning letter to MiMedx regarding AXIOFILL?

The FDA issued a warning letter to MiMedx's CEO concerning the AXIOFILL product on December 20, 2023.

How many former MiMedx employees have filed counterclaims against the company?

Ten former MiMedx employees have filed counterclaims against the company in response to a non-compete lawsuit.

What is MiMedx's stock symbol?

MiMedx Group's stock symbol is NASDAQ: MDXG.