Federal Judge Rejects Eli Lilly’s Request That Whistleblower Suit Be Tossed Out

March 2, 2022

A whistleblower’s allegation that Eli Lilly may have defrauded Medicaid via its rebate program will soon go to trial now that a federal judge has rejected the drugmaker’s attempt to toss out the suit.

This week, a federal judge in Chicago rejected Lilly’s attempt to dismiss the lawsuit, saying that the plaintiff, lawyer and pharmacist Ronald Streck, have presented evidence to the court suggesting that Lilly made false statements to the Centers for Medicare and Medicaid Services (CMS) regarding the amounts it charged distributors for its medicines between 2005 and 2016.

In addition, the judge rejected Lilly’s claim that it used a “reasonable interpretation” of pricing regulation.

The case will now go to a jury trial to determine whether the drugmaker’s actions were intentional and caused a loss to the federal government and Medicaid agencies in 26 states, the judge said.

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