Roche, LifeScan Proceed in Diabetes Test Strip Fraud Suits

Two diabetes test strip makers can move forward with New Jersey-based federal lawsuits alleging that they’ve been defrauded of millions due to an illegal scheme perpetrated by former employees and business partners of Alliance Medical Holdings LLC.

Roche Diagnostics Corp. and LifeScan Inc. alleged that they lost millions in profits between 2013 and 2017 because they were forced to pay rebates to Alliance-related entities that allegedly sold “retail” blood glucose test strips to customers, when they’d actually sole “wholesale” strips that weren’t eligible for rebates.

The allegedly fraudulent scheme operated nationwide, and involved pharmacies in Arizona, California, Florida, Georgia, Iowa, ...