Texas Pharmacy Operators Lose Bid to Toss Kickback Indictment

A group of six alleged co-conspirators accused of health-care fraud in the Southern District of Texas have lost their bid to dismiss the criminal charges against them.

The defense argued that prosecutors failed to allege that commissions paid to XpressCompounding marketers were prohibited under the Anti-Kickback Statute. The marketers weren’t in a position to refer patients to or even to recommend services to would-be patients, they claim.

But the US District Court for the Northern District of Texas said the indictment followed the elements of the statute, alleging corruption through prohibited conduct and with the requisite intent.

To the extent ...