Pharmacy Wholesalers Escape Drug-Inflation FCA Suit

Law360, Los Angeles (December 9, 2013, 8:45 PM EST) -- A New Jersey federal judge on Monday junked a whistleblower’s False Claims Act suit accusing Express Scripts Inc. and other companies of using inflated average wholesale prices to devise a Medicaid overbilling scheme, ruling the public disclosure doctrine blocked the suit.

Granting the companies' motion to dismiss, U.S. District Judge Dennis M. Cavanaugh said the facts alleged in the suit — which also named AmerisourceBergen Corp. and CVS Caremark Corp., among others — already had been revealed through a federal investigation and previous litigation.

Pharmacist David...
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