Allergan Defeats Whistleblower Suit Alleging Medicaid Fraud

Allergan PLC stopped a False Claims Act suit alleging a fraudulent price reporting scheme under the Medicaid Drug Rebate Program because the the complaint didn’t show the company acted willfully, a Maryland federal court said.

Rebate program requirements are susceptible to multiple interpretations, and therefore whistleblower Deborah Sheldon couldn’t adequately plead that the company made claims that can be deemed false under the False Claims Act, Judge Ellen L. Hollander of the U.S. District Court for the District of Maryland said in a Thursday ruling.

The Centers for Medicare & Medicaid Services has accounted for the complexity of the program’s ...