Court grants Lilly injunction in lawsuit alleging $200M fraud scheme

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A federal judge has granted a preliminary injunction in Eli Lilly’s lawsuit alleging a group of pharmacies, wholesalers and individuals orchestrated a rebate fraud scheme that cost the drugmaker more than $200 million.

Judge Federico Moreno of the U.S. District Court for the Southern District of Florida approved a stipulation and joint motion for a preliminary injunction filed by Lilly and a group of 15 defendants known in the order as the DrugPlace Defendants, according to a June 9 court order. 

Under the injunction, the defendants are prohibited from submitting rebate claims for Lilly medicines, including Trulicity, without first providing specified supporting information; that includes prescribing physician information, copies of prescriptions and patient identification data tied to the claims. The order also requires the defendants to preserve records related to their operations, finances, Lilly medicines and rebate claims.

The injunction will remain in effect until the conclusion of the case or unless modified by the court.

The lawsuit is the latest in a series of aggressive enforcement moves by Lilly around drug distribution integrity, including its recent push to require 340B hospitals to submit claims data. 

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