Medical company received a $10 million government loan 2 weeks after paying $6.5 million for allegedly overcharging the US for veteran's care - Creak News

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Medical company received a $10 million government loan 2 weeks after paying $6.5 million for allegedly overcharging the US for veteran's care

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President Donald Trump signs the Paycheck Protection Program and Health Care Enhancement Act in the White House on April 2.Olivier Douliery / AFP / Getty

  • MiMedx Group, a biopharmaceutical company, received $10 million from the government's Paycheck Protection Program two weeks after paying the government $6.5 million to resolve allegations it had been knowingly overcharging for medical supplies. 
  • Last year the company was also sued for exaggerating its revenue to investors. That case was settled and no fault was admitted. Two of its executives were also indicted on accounting fraud charges.
  • Hilary Dixon, a MiMedx spokesperson, told The New York Times: "We don't have the option of raising capital in the public markets owing to our financial restatement process."
  • The government's Paycheck Protection Program is a core part of the Trump administration's attempts to protect the economy from the impact of restrictions and social distancing.
  • Visit Business Insider's homepage for more stories

A biopharmaceutical company received $10 million from the government's Paycheck Protection Program two weeks after paying the government $6.5 million to resolve Justice Department allegations that it had been knowingly overcharging for medical supplies. 

On April 6, MiMedx Group, which makes and sells human tissue grafts and is based in Georgia, agreed to pay $6.5 million to resolve a Justice Department investigation that alleged it had violated federal law by knowingly overcharging the Department of Veterans Affairs for medical supplies, according to The New York Times.

See the rest of the story at Business Insider

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