4 Drug Cos. Can't Exit FCA Suit Over Medicaid Rebate Prices

Law360, New York (July 05, 2012, 9:57 PM ET) -- A Pennsylvania federal judge on Tuesday gutted a False Claims Act suit that accuses 30 pharmaceutical manufacturers of fraudulently lowering their reported average manufacturer prices in order to pay less in Medicaid rebates to the government, leaving only four defendants.

U.S. District Judge Eduardo C. Robreno dismissed relator Ronald J. Streck's claims against certain defendants, who he contends hid the true price that wholesalers paid those manufacturers for drugs and effectively lowered their AMP to the government, saying the fourth amended complaint failed to plead sufficiently...
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