Lilly Fined for Medicaid Violation
A US federal court has ordered Eli Lilly to pay over $61 million in damages after whistleblower Ronald Streck filed a lawsuit alleging that the drugmaker had underpaid rebates required under the Medicaid program.
However, under the False Claims Act, damages are trebled so the final judgement by the Northern District Court of Illinois will be more than $183 million.
Former drug wholesaler executive Ronald Streck filed the lawsuit against Lilly in 2014, alleging that the drugmaker had misstated distributors’ drug pricing from 2005 to 2016 by not increasing the rebates as prices increased. This resulted in Medicaid agencies paying higher prices.
Lilly filed for the case to be dismissed, claiming that its miscalculations were unintentional, but in March a Chicago judge rejected the claims, and sent the case to trial.
The Illinois jury’s verdict is the latest in a series of False Claims Act lawsuits that Streck has brought against major drug firms relating to misconduct under the Medicaid drug rebate program. Last year, awards included a $75 million settlement with Bristol Myers Squibb and an $18 million settlement with Astellas Pharma US. Lilly was the remaining defendant.
According to his lead counsel Walden Macht & Haran, Streck’s lawsuits have recovered more than $350 million for the Medicaid program.
Author: Elaine Burridge, Freelance Journalist
