Drug Companies Defeat Adventist Health System’s Price Fraud Suit

Abbvie Inc. and other pharmaceutical companies won dismissal of Adventist Health System/West’s whistleblower suit alleging Medicaid fraud.

Adventist sued in May 2021 alleging that the defendants violated the False Claims Act because they failed to comply with drug pricing requirements of the 340B drug pricing program, which places a ceiling price for certain outpatient drugs when they are sold to health-care providers known as covered entities.

Adventist said that the defendants caused false claims to be submitted to the federal government and state governments by failing to comply with a statutory pricing formula.

But the suit is barred the US ...