Bristol-Myers Squibb Can’t Show Error in Medicaid Fraud Ruling

Bristol-Myers Squibb Co. didn’t demonstrate that a federal court erred in allowing a whistleblower to proceed with claims that the company engaged in Medicaid fraud under the False Claims Act.

Ronald J. Streck adequately pled the falsity and knowledge elements of his “service fee scheme,” Judge Timothy J. Savage of the U.S. District Court for the Eastern District of Pennsylvania said in his denial of a motion for reconsideration.

Streck asserts that Bristol-Myers Squibb Co. disguised drug price increases as service fees so it could under-report a rebate owed to states under Medicaid rules.

The company also company mischaracterized service ...