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.