DermTech Inc., now liquidating as DTech Liquidating Inc., has agreed to pay up to $5 million to resolve allegations it submitted false claims to Medicare for unreliable skin cancer tests. The settlement addresses two instances of faulty testing: tests conducted with an unvalidated positive control range from 2022–2023 and tests with insufficient patient RNA from 2020–2022. DermTech billed Medicare for these tests despite quality control issues and failed to retract results or refund Medicare when concerns arose. The Justice Department, U.S. Attorney’s Office, FBI, and HHS-OIG collaborated on the case. A former employee’s whistleblower lawsuit under the False Claims Act is resolved, with the whistleblower set to receive 20% of the recovery. The company’s bankruptcy proceedings included an Allowed Class Three General Unsecured Claim of $5,038,011 for the U.S. The case underscores enforcement efforts against healthcare fraud under the False Claims Act.
Source: U.S. Department of Justice (DOJ).
Materials reproduced from https://www.justice.gov/.
No endorsement by the DOJ is implied.
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