Del. Judge Tosses Whistleblower Suit Alleging Medical Industry 'Kickbacks'

A former executive at Medco Health Solutions Inc. who sued the health care company on behalf of the United States, California, Florida and New Jersey for allegedly violating anti-kickback laws lacked immediate knowledge of any wrongdoing, a Delaware federal judge ruled on Tuesday.

The whistleblower, former Medco vice president of pharmaceutical contracting Paul Denis, had accused the company of defrauding the government by favoring certain drugs in exchange for kickbacks from AstraZeneca disguised as discounts, which the firm failed to disclose with its clients, including health care plans subsidized by Medicare Part D. The lawsuit was brought under the False Claims Act and related state laws.