DermTech’s bankruptcy proceedings now include a settlement over allegations that the skin cancer testing company billed Medicare for unreliable diagnostic tests. The resolution covers claims tied to quality control failures between 2020 and 2023 and does not apply to DermTech LLC, which bought the company’s assets in 2024.

Highlights

• DermTech’s bankruptcy estate will resolve Medicare false claims allegations by granting the United States an allowed Class Three general unsecured claim of $5,038,011.
• Authorities allege DermTech billed Medicare from January 2020 to March 2023 for skin cancer tests with compromised quality controls or insufficient patient RNA, producing unreliable results.
• The civil settlement resolves a whistleblower lawsuit under the False Claims Act, granting the relator 20% of any recovery received from the bankruptcy court as part of broader federal healthcare fraud enforcement.

Settlement terms and testing failures

As announced by the U.S. Department of Justice, the United States receives an allowed Class Three general unsecured claim of $5,038,011 in DermTech’s Chapter 11 bankruptcy case in Delaware. The company, now liquidating as DTech Liquidating Inc., agrees to resolve allegations that it knowingly submitted false claims to Medicare for skin cancer tests affected by significant quality problems.

Federal authorities say DermTech billed Medicare from October 2022 to March 2023 for tests performed after it switched to an unvalidated positive control...

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