Roche Diagnostics’s Diabetic Test Strip Fraud Claims Proceed

Roche Diagnostics Corp. can proceed on claims alleging a pharmacy group defrauded it out of millions of dollars in rebates it paid insurance companies for blood glucose test strips, a federal court in Alabama said.

Priority Care, an association of pharmacies located in Alabama, Mississippi, and Arkansas, couldn’t shake claims it violated the federal Racketeer Influenced and Corrupt Organizations Act and committed fraud by billing insurers and pharmacy benefits managers for thousands of diabetic test strips that weren’t intended to be sold directly to consumers, the U.S. District Court for the Northern District of Alabama said.

Roche makes test strips ...