In a development that’s sure to cheer the pharmaceutical industry, the U.S. Supreme Court declined on Monday to review a lower court ruling limiting drug companies’ False Claims Act liability for shoddy distribution practices.
The justices denied a bid by whistleblower Barry Rostholder to revive claims that his former employer, Omnicare Inc., defrauded Medicare and Medicaid by distributing contaminated penicillin. The U.S. Court of Appeals for the Fourth Circuit ruled earlier this year that even if Rostholder’s contamination claims are true, the False Claims Act doesn’t cover Omnicare’s alleged misconduct.
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