Sunovian Pharmaceuticals Stops Whistleblower’s Kickback Claims

Sunovian Pharmaceuticals won dismissal of a whistleblower’s claims that the company defrauded Medicare by engaging in a kickback scheme to generate pharmacies’ prescriptions of Brovana, a drug used to treat chronic obstructive pulmonary disease.

Scott Louderback didn’t adequately plead causation because he didn’t allege that pharmacies would have prescribed a different drug to their patients “but for” the unlawful kickback arrangement, Judge Eric C. Tostrud of the US District Court for the District of Minnesota said in a Monday opinion.

The complaint’s references to but-for causation “are quite general, even conclusory” and therefore don’t satisfy federal pleading standards, the court ...