Valeant Urges SCOTUS to Clarify Disclosure Rule in Fraud Law

Valent Phamaceuticals International Inc. and Salix Pharmaceuticals Ltd. asked the US Supreme Court to review the revival of 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’s decision created a circuit split by holding that whistleblower Zachary Silbersher could avoid the FCA’s public disclosure bar by “stitching together” public disclosures, Valeant said in its petition to the Supreme Court, which was docketed April 8.

The bar precludes suits based on information that has been disclosed in federal administrative hearings, government reports, news ...