La. Is Latest State To Demand Causation For Medicaid Fraud

Law360, New York (February 7, 2014, 4:31 PM EST) -- In a split decision, the Louisiana Supreme Court recently stripped the state of Louisiana of a $258 million jury award against Janssen Pharmaceutica Inc. and Johnson & Johnson in connection with its marketing of the anti-psychotic drug, Risperdal, concluding that the state failed to present evidence establishing a causal link between the defendants' alleged bad acts and the submission of false claims for payment under Louisiana's Medicaid fraud/false claims statute.[1]

This decision represents the most recent example of a state appellate court requiring a state, which files suit under its Medicaid fraud statute, to present individualized proof connecting a manufacturer's allegedly...

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