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Drugmakers Beat RICO but Not Fraud Claims Over Insulin Prices

April 1, 2019, 9:20 PM

Three drugmakers accused of insulin price gouging have beaten a racketeering suit, but they must still face fraud allegations.

Sanofi Aventis US LLC, Novo Nordisk Inc., and Eli Lilly & Co. don’t have to face claims under the Racketeer Influenced and Corrupt Organizations Act because the plaintiffs are “indirect purchasers” prohibited from seeking antitrust-based damages, a New Jersey federal judge ruled March 29.

The plaintiffs, MSP Recovery Claims Series LLC and two affiliates, are companies that paid insurers for the right to recover Medicare Advantage overpayments they had made.

Their lawsuit accuses the drugmakers of jacking up insulin’s ...