THIRD DEFENDANT FIGHTS BACK AGAINST MiMEDX, CLAIMING 'DISREPUTABLE AND UNLAWFUL BUSINESS PRACTICES'

Rhea-AI Summary

MiMedx Group (NASDAQ: MDXG) faces counterclaims from a third former employee, Jake Heikkinen, alleging the company engaged in schemes to defraud Medicare and pressure healthcare providers to use unnecessary products. Heikkinen's filing, along with two other recent complaints, accuses MiMedx of predatory sales practices and lack of transparency regarding FDA warnings about its AXIOFILL product. The counterclaims describe MiMedx's lawsuit against 10 former employees as a 'blatant intimidation tactic' and allege that the company compelled employees to sell products without proper FDA approval. These accusations follow a warning letter from the FDA to MiMedx's CEO on December 20, 2023, regarding AXIOFILL.

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• Facing counterclaims from three former employees alleging fraudulent practices
• Accused of schemes to defraud Medicare and pressure healthcare providers
• Allegations of predatory sales practices and lack of transparency
• FDA warning letter issued on December 20, 2023, regarding AXIOFILL product
• Lawsuit against former employees described as 'blatant intimidation tactic'
• Accusations of compelling employees to sell products without proper FDA approval

Ex-MiMedx Employee Jake Heikkinen Files Counterclaims Alleging Schemes 'To Bilk Medicare' and 'Incentivize and Pressure Healthcare Providers' per Mintz Attorneys

MARIETTA, Ga., Sept. 4, 2024 /PRNewswire/ -- The third of 10 defendants who were sued earlier this year by MiMedx Group, Inc. (NASDAQ: MDXG) today filed counterclaims against the company. Jake Heikkinen, a former MiMedx employee, states in the filing that he left the placental biologics company because of "MiMedx's schemes to bilk Medicare and other government and third-party taxpayers" and "'to incentivize and pressure 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 and the federal government." Heikkinen also formally presented his answers and defenses to MiMedx's lawsuit which claimed that the 10 former employees, who all recently left the company, allegedly breached their contractual obligations to MiMedx. The filing describes the MiMedx suit as a "blatant intimidation tactic."

Specifically, the counterclaims by Heikkinen allege that MiMedx "engaged in and has directed members of its sales team including Mr. Heikkinen to engage in, predatory sales practices aimed at increasing its revenue by incentivizing fraud on the United States government, including Medicare fraud." The filing also states, "These examples are only the most recent in a long line of disreputable and unlawful business practices that MiMedx has engaged in."

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 this former employee and others felt "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.

The claims filed by Heikkinen's attorneys at Mintz and Fellows Labriola allege that he 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 two other complaints filed this month on behalf of former MiMedx employees, Lora Whooley, and Caralyn Gargan. To read the Whooley claim, please click here HERE, and to read the Gargan claim, please click HERE.

Caralyn Gargan's
https://peachcourt.com/Redirect?id=CIPG3FVQ

Lara Whooley's Counter Claim:
https://peachcourt.com/Redirect?id=SGQEOGT4

View original content:https://www.prnewswire.com/news-releases/third-defendant-fights-back-against-mimedx-claiming-disreputable-and-unlawful-business-practices-302238574.html

SOURCE Mintz

FAQ

What are the main allegations against MiMedx in Jake Heikkinen's counterclaim?

Jake Heikkinen's counterclaim alleges that MiMedx engaged in schemes to defraud Medicare, pressured healthcare providers to use unnecessary products, and practiced predatory sales tactics to increase revenue through fraud on the U.S. government, including Medicare fraud.

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

As of September 4, 2024, three former MiMedx employees have filed counterclaims against the company: Jake Heikkinen, Lora Whooley, and Caralyn Gargan.

What regulatory action did the FDA take against MiMedx regarding its AXIOFILL product?

The FDA issued a warning letter to MiMedx's CEO, Joseph H. Capper, on December 20, 2023, concerning the AXIOFILL product, stating that it could not be lawfully marketed without prior FDA approval.

Why did MiMedx (MDXG) initially sue the 10 former employees?

MiMedx sued 10 former employees, claiming they allegedly breached their contractual obligations to the company after recently leaving their positions.