SCOTUS Passes on Valeant’s Challenge to False Claims Act Ruling

The US Supreme Court said Monday that it won’t review Valeant Phamaceuticals International Inc. and Salix Pharmaceuticals Ltd.'s challenge to a decision that reinstated a False Claims Act suit alleging that they fraudulently obtained a drug patent and overbilled Medicare for prescriptions.

The US Court of Appeals for the Ninth Circuit revived whistleblower Zachary Silbersher’s suit, concluding that his claims weren’t precluded by the FCA’s public disclosure bar, which prevents suits based oninformation that has been disclosed in federal administrative hearings, government reports, news media, and other sources.

The Ninth Circuit said “scattered” public disclosures might contain a piece of ...