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Wisconsin to get nearly $900K in lawsuit settlement against Texas drug-maker

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Gavel & Stryker, made from Cherry & Ash, sold to Whitney Hoffman. By KeithBurtis (Flickr: Gavel & Stryker) [CC-BY-2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
Gavel & Stryker, made from Cherry & Ash, sold to Whitney Hoffman. By KeithBurtis (Flickr: Gavel & Stryker) [CC-BY-2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

MADISON, WI (WTAQ) - Wisconsin will get almost $900,000 in the settlement of a state lawsuit against a Texas drug company.

HealthPoint Limited and its partner DFB Pharmaceuticals will pay a total of $33 million for selling an unapproved drug to Medicaid patients.

The drug was Xenaderm, an ointment used mainly to treat bed-sores in nursing home patients.

Sixteen states and the U.S. Justice Department claimed that HealthPoint never obtained the required FDA approval to market the medication. And as a result, HealthPoint made false reimbursement claims to Medicaid programs in Wisconsin and the other states involved. 

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