One of 10 former MiMedx employees involved in a noncompete lawsuit has filed counterclaims against the company.
The former employee, Caralyn Gargan, filed the action against the biomaterial company for "predatory sales practices" and "incentivized fraud." Ms. Gargan also formally presented her answers and defenses to MiMedx's initial lawsuit against her and 10 other former employees, who allegedly breached their contractual obligations to MiMedx. Ms. Gargan's filing described the MiMedx suit as a "blatant intimidation tactic."
Ms. Gargan's counterclaims specifically 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."
Her claims reference a warning letter issued by the FDA to MiMedx's CEO, Joseph Capper, regarding its Axiofill product on Dec. 20, 2023, which said that the product failed to meet certain FDA criteria for premarket approval.
She also alleges that she 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," according to the release.
Ms. Gargan's counterclaims come after another former employee filed similar complaints earlier this month, according to Aug. 20 court documents.
MiMedx declined Becker's request for comment.