Supreme Court Rejects “Objectively Reasonable” Defense to False Claims Act Liability

The SuperValu case arose from separate lawsuits against two companies that operate retail drug pharmacies across the country: SuperValu Inc. and Safeway, Inc. In each case, a whistleblower – on behalf of the federal government – brought FCA claims against the company for allegedly overcharging Medicare and Medicaid in seeking reimbursement for prescription drugs. The companies were obligated, through Medicare contracts or Medicaid regulations, to disclose their “usual and customary” prices for…
By: Foley Hoag LLP – White Collar Law &