Judge rejects ‘specific patient rule’ in case over false claims, kickbacks

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted April 24, 2024 11:30 AM

Two of Allergan’s former sales representatives accused the pharmaceutical manufacturer of violating the False Claims Act and Anti-Kickback Statute by using a “speaker program” to give physicians illegal payments for prescribing two of its medications — Linzess and Viberzi — but the company insisted the complaint was defective because it didn’t “identify a specific patient to whom a doctor allegedly prescribed Linzess or Viberzi in exchange for a kickback.”As support for this “specific patient rule,” Allergan relied on U.S. …

To Read the Full Story

Your source for legal news and information

Print & Digital Access

Stay in the know all year long with these benefits:

Delivery to your office in downtown Chicago or mailed outside our hand-delivery zone.
Unlimited access to chicagolawbulletin.com.
Access to our e-edition and mobile site.
Breaking news alerts, Morning Lineup and Afternoon Headlines.
Exclusive access to events, discounts and more.

Order now, or call 312-644-2394 or email Subscription@LawBulletinMedia.com for details.

Be in the know. These must-read insider briefings will keep you

informed of the latest legal developments in Chicago. Sign up today!

Courts split on correct venue for subpoena battle

When a non-party located in New Hampshire challenged a subpoena duces tecum that called for production of documents in Las Vegas, the first hurdle was a venue question that has “befuddled attorneys and split courts.”
By Steven P. Garmisa
Nonprofit proposes safe injection site for opioid abusers, claims sacred right

Threatened with criminal prosecution if it opens up a “safe injection site” for people struggling with opioid abuse, a nonprofit Pennsylvania corporation claimed protection under the Religious Freedom Restoration Act and First Amendment.
By Steven P. Garmisa
CTA defeats ask for 9 figures in catastrophic injury case

Attention-grabbing headlines of so-called nuclear verdicts are everywhere. There is obvious benefit to the individual plaintiffs’ attorney who obtains such a verdict to publicize it. But there is also benefit to the plaintiffs’ bar as a whole as to the value of similar cases that can be used to extract hefty settlements from defendants.
By Patrick Eckler
Courts split on overtime ‘gap time’ claims

There’s a 1-1 tie in the U.S. Circuit Courts of Appeal on the validity of “overtime gap time claims” under the Fair Labor Standards Act.
By Steven P. Garmisa
Court mulls over timing for stock option damages

Gautam Shah persuaded a California jury that Skillz Inc. falsely claimed it had cause to terminate his employment in 2018 and then used this pretext to block him from exercising stock options worth more than $11.5 million when the company went public in 2020.
By Steven P. Garmisa
Further analysis ordered in case involving cash-out merger

In a case involving a cash-out merger that was governed by Delaware’s “entire fairness” standard, the Illinois Appellate Court instructed a trial judge to consider the equitable remedy of “rescissory damages” as an alternative to compensatory damages.
By Steven P. Garmisa
Does Constitution come into play in Oregon homelessness appeal?

Homelessness in many U.S. cities has become a major issue. In an Oregon city, the municipality addressed the issue by an ordinance that fined the homeless for using blankets, pillows or cardboard boxes for protection while sleeping within city limits. The U.S. Supreme Court heard arguments last week in the matter.
By Daniel A. Cotter
Defendants attack assignment as champertous

When one of the plaintiffs in an antitrust case against turkey processors assigned its claim to a third party, the defendants argued the transfer was invalid as “champertous” under Illinois law. But U.S. District Judge Virginia M. Kendall of the Northern District decided “federal common law” should provide the answer.
By Steven P. Garmisa