Va. AG Announces Settlement With Pharmaceutical

Posted: February 28, 2013

RICHMOND, Va. — Virginia's Medicaid program will receive more than $223,000 under a settlement that resolves allegations that a Texas-based company submitted false claims for an unapproved drug.

Attorney General Ken Cuccinelli announced the settlement Wednesday.

In December, the U.S. Justice Department said Healthpoint Ltd. and DFB Pharmaceuticals will pay up to $48 million to settle allegations that Healthpoint marketed a prescription skin ointment without approval from federal regulators. Several states worked with the Justice Department on the investigation.

The Justice Department said Healthpoint caused false claims for reimbursement to be submitted for Xenaderm, which is used for treating nursing home patients’ bed sores. Fort Worth, Texas-based Healthpoint is one of DFB's operating companies.