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Blue Cross RICO Suit Against Regeneron Paused Pending DOJ Case

Sept. 28, 2022, 2:08 PM

Blue Cross and Blue Shield of Massachusetts Inc.'s suit accusing Regeneron Pharmaceuticals Inc. of engaging in a kickback scheme to boost sales of its macular degeneration drug, Eylea, will be stayed pending resolution of the Justice Department’s similar suit, a Massachusetts federal district court said.

The DOJ in June 2020 filed its False Claims Act suit alleging a kickback scheme under which Regeneron funneled money into a charity to reimburse Medicare copays of Eylea patients. Blue Cross in December 2021 filed its suit alleging that Regeneron’s alleged scheme violated the Racketeer Influenced and Corrupt Organizations Act.

The DOJ action will ...