Supreme Court Will Review SuperValu Drug Price Fraud Claims (1)

The US Supreme Court announced Friday that it will review whistleblowers’ arguments that a False Claims Act suit alleging drug price fraud by SuperValu Inc. should be revived.

Tracy Schutte and Michael Yarberry argued in their petition that the US Court of Appeals for the Seventh Circuit applied an improper standard when it ruled that SuperValu didn’t knowingly misreport the usual and customary prices it charged, which caused Medicare and Medicaid to overpay.

SuperValu based its actions on an objectively reasonable interpretation of the law, and so lacked the scienter necessary to be liable under the FCA, the Seventh Circuit ...