Rite Aid Defeats Whistleblower Suit Alleging Drug Overbilling

Rite Aid Corp. escaped a False Claims Act suit accusing the company of overbilling government health-care programs for prescription drugs, after a Dec. 12 Michigan federal court ruling.

Pharmacist and whistleblower Azam Rahimi’s suit couldn’t proceed under the FCA’s public disclosure bar because he based his claims on a press release from the Connecticut Attorney General’s office and a news article, Judge Stephen J. Murphy III, of the U.S. District Court for the Eastern District of Michigan, said in an order granting Rite Aid’s motion to dismiss.

Rahimi didn’t satisfy the FCA’s original source exception to the public disclosure bar ...