Allergan Whistleblower Gets Court to Reopen Drug Fraud Suit (1)

Allergan Sales LLC must again defend against a suit alleging the company violated the False Claims Act by providing false price reports to the government under the Medicaid Drug Rebate program, the Fourth Circuit said Friday.

A Maryland federal district court, which dismissed the suit alleging a $680 million fraud scheme, erred in concluding that whistleblower Troy Sheldon didn’t show the company submitted false claims to the government or acted with requisite knowing of wrongdoing, the US Court of Appeals for the Fourth Circuit said in a split decision authored by Judge Nicole Berner.

Sheldon raised allegations that the company ...