If a company receives Medicare or Medicaid payments from the government for adulterated drugs, is that a violation of the False Claims Act? No, according to a ruling Friday by the U.S. Court of Appeals for the Fourth Circuit.
In a 20-page decision, a unanimous panel held that as long as the unadulterated form of the drug has been approved by the Food and Drug Administration, then the government’s payment for tainted drugs doesn’t give rise to an FCA lawsuit. The FCA allows claims to be brought against those who make false claims for payment from the government.
