SuperValu, Safeway Urge Justices to Avoid Drug Pricing Penalties

It would be unfair to revive two False Claims Act suits alleging that SuperValu Inc. and Safeway Inc. overcharged the government for prescription drugs, because of the government’s lack of clarity in Medicare and Medicaid pricing rules, the companies told the US Supreme Court.

The US Court of Appeals for the Seventh Circuit affirmed the rejection of the suits, concluding that the companies didn’t knowingly overcharge for drugs because they followed an objectively reasonable interpretation of the law. Whistleblowers say the cases should be reinstated because the companies subjectively believed they were improperly seeking reimbursement when they submitted claims.

The ...