Walgreens Ducks Fraud Action Over Pills In 7th Circ.

Law360, New York (January 21, 2011, 7:05 PM EST) -- The Seventh Circuit has snuffed out a putative class action alleging Walgreen Co. defrauded third-party payors by filling prescriptions for two generic drugs with pricier versions of the pills.

On Friday, the U.S. Court of Appeals for the Seventh Circuit concluded that Pirelli Armstrong Tire Corp. Retiree Medical Benefits Trust failed to substantiate allegations Walgreens engaged in a fraudulent scheme to switch prescriptions for cheaper forms of generic Zantac and Prozac with more expensive capsules or tablets.

The appeals court said that the district court applied...
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