Escobar Ruling Helps Genentech Beat Avastin FCA Suit

Law360, New York (May 1, 2017, 7:41 PM EDT) -- The Third Circuit on Monday nixed a False Claims Act suit accusing Genentech Inc. of defrauding Medicare by concealing side effects of its blockbuster cancer drug Avastin, saying a whistleblower didn’t show that failing to report safety information was relevant to government reimbursement for the medication.

The court’s unanimous and precedential opinion said that whistleblower Gerasimos Petratos failed to show that Genentech's alleged noncompliance had an impact on government payment. As a result, it isn't "material" noncompliance that could give rise to FCA liability under the...
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