Eli Lilly Loses Appeal to Overturn $183.7 Million Medicaid Rebate Judgment

A federal appeals court has upheld a $183.7 million judgment against Eli Lilly after finding the company defrauded Medicaid by concealing retroactive drug price increases between 2005 and 20171234.

The case was brought by whistleblower Ronald Streck, who alleged that Lilly knowingly misreported drug prices and failed to adjust Medicaid rebates, in violation of the federal False Claims Act13.

Jurors originally ordered Lilly to pay $61.23 million in 2022; this was trebled to $183.7 million under the statute14.

The 7th U.S. Circuit Court of Appeals found 'ample evidence' that Lilly knowingly deprived the government of over $60 million in rebates while generating more than $600 million in revenue from the price increases124.

The court rejected both Lilly’s argument that its practices were permitted and the whistleblower’s claim for an even larger award13.

Eli Lilly continues to dispute the ruling and has indicated its intention to appeal further, arguing the court’s decision contradicts a previous appellate ruling involving other drugmakers1.

Sources:

1. https://www.benzinga.com/news/legal/25/09/47649878/eli-lilly-loses-appeal-over-medicaid-drug-pricing-fraud-case

2. https://ground.news/article/eli-lilly-loses-appeal-of-1837m-medicaid-fraud-award-honolulu-star-advertiser_e9209d

3. https://www.ainvest.com/news/federal-appeals-court-upholds-183-7m-medicaid-fraud-award-eli-lilly-2509/

4. https://www.benzinga.com/news/legal/25/09/47649878/eli-lilly-loses-appeal-over-medicaid-drug-pricing-fraud-case?nid=47650437