In a unanimous ruling on June 1, the Supreme Court revived whistleblower lawsuits against pharmacy operators SuperValu and Safeway for allegedly overcharging the government by filing false Medicare and Medicaid reimbursement claims for prescription drugs they sold.
The case was considered important because it concerns the federal False Claims Act (FCA), which is a key tool for the government to crack down on health care fraud.
The Supreme Court reversed the U.S. Court of Appeals for the 7th Circuit. This means the lawsuits, which are not final, will be allowed to proceed in the lower courts.
The 7th Circuit had previously determined that the two companies had overbilled the government, but found that their pricing was based on a reasonable regulatory interpretation….