Ex-MiMedx Employee Caralyn Gargan Files
Counterclaims for "Predatory Sales Practices" and "Incentivized
Fraud" per Mintz Attorneys
MARIETTA,
Ga., Aug. 26, 2024 /PRNewswire/ -- One of 10
defendants who were sued earlier this year by MiMedx Group, Inc.
(NASDAQ: MDXG) today filed counterclaims against the placental
biologics company. Caralyn Gargan, a former MiMedx employee,
filed the action against MiMedx for "predatory sales practices" and
"incentivized fraud, including Medicare fraud." Gargan also
formally presented her answers and defenses to MiMedx's lawsuit
which claimed that the 10 former employees, who 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 Gargan allege
that MiMedx "engaged in and has directed members of its sales team
including [the former employee] to engage in, predatory sales
practices aimed at increasing its revenue by incentivizing fraud on
the United States government,
including Medicare fraud."
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 the former
employee and others "became increasingly uncomfortable about MiMedx
senior leadership's direction to sell AxioFill, even though it had
not been approved by (or even submitted to) the FDA for FDA
Premarket Approval."
The claims filed by Gargan's attorneys at Mintz
and Fellows Labriola allege that she 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
another filed earlier this month on behalf of another former MiMedx
employee, Lora Whooley. To read the
Gargan claim please click HERE. To read the Whooley claim, please
click here HERE.
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content:https://www.prnewswire.com/news-releases/defendant-fights-back-against-mimedx-blatant-intimidation-non-compete-suit-302230456.html
SOURCE Mintz
