Justices Appear Open to Whistleblowers’ Drug Fraud Arguments (1)

The US Supreme Court during oral arguments Tuesday struggled to get a clearer understanding of whether a proper interpretation of the False Claims Act requires reviving drug price fraud claims against SuperValu Inc. and Safeway Inc.

But some justices indicated that the FCA requires consideration of a defendant’s subjective intent, which could lead to reinstating the suits.

Whistleblowers in two consolidated cases say the US Court of Appeals for the Seventh Circuit relied on an improper interpretation of the FCA’s scienter standard to reject their claims against the companies. The appeals court said that the companies didn’t knowingly submit false ...