OXFORD - The United States has intervened in a federal whistleblower suit filed against Mitias Orthopaedics in New Albany.

The suit, filed in the U.S. District Court of North Mississippi, alleges that Mitias knowingly submitted false claims for FDA-approved name-brand knee injectable devices, and received payment at those rates, but actually purchased and utilized a much cheaper product from a compound pharmacy to increase profit margin.

The lawsuit was originally filed under the whistleblower provisions of the False Claims Act by a pharmaceutical sales representative. Under the acts, a private party can file an action on behalf of the United States and receive a portion of the recovery. The act permits the United States to intervene in and take over the action, as it has done here.

“Our office is committed to protect taxpayer dollars from waste, fraud, and abuse and ensure the integrity of our federal healthcare programs like Medicare, Medicaid, TRICARE and Railroad Medicare,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “CMS/Medicare is ready, willing, and able to pay for high-quality products. Any attempt to manipulate the reimbursement system drives up costs for everyone.”

william.moore@journalinc.com

Twitter:@WilliamMoore_DJ

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