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# Ex-Advanced BioHealing CEO Settles Marketing Suit
- URL: https://www.fdaweb.com/ex-advanced-biohealing-ceo-settles-marketing-suit/
- Published: 2019-06-07T12:00:00.000Z
- Updated: 2026-09-15T01:31:27.000Z
- Author: David McFarland
- Tags: Devices, #legacy-id-D5144286

Former Advanced BioHealing chairman and CEO **Kevin Rakin** has agreed to pay the government $2.5 million to settle False Claims Act allegations that he knowingly allowed company sales representatives to use kickbacks and other unlawful methods to induce clinics and physicians to use or overuse its Dermagraft product. The bioengineered human skin substitute is approved by FDA for treating diabetic foot ulcers. “Kickbacks that incentivize the sale of medical devices undermine the integrity of our health care system,” U.S. Attorney **Maria Chapa Lopez** is quoted in a [release ](https://www.justice.gov/usao-mdfl/pr/former-advanced-biohealing-ceo-pay-25-million-settle-false-claims-act-allegations?ref=fdaweb.com)as saying.

The settlement resolves whistleblower allegations that Rakin allowed Dermagraft salespeople to “unlawfully induce clinics and physicians with lavish dinners, entertainment, and travel; medical equipment and supplies; unwarranted payments for purported speaking engagements and bogus case studies; and cash, credits, and rebates, to induce the use of Dermagraft,” the government contends.

In 2011, Shire plc acquired Advanced BioHealing and named Rakin president of its newly-formed subsidiary, Shire Regenerative Medicine. In 2017, Shire paid the U.S. $350 million to settle similar federal and state False Claims Act allegations related to Dermagraft’s promotion, the government says.