Policy & Compliance
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October 10, 2024
Housing Nonprofit Hits NY Town With Disability Bias Suit
A housing nonprofit has claimed in New York federal court that local officials stopped the construction of an affordable housing project in the Hamptons because a lot of the units would go to people with mental health disabilities and military veterans, who would receive supportive services.
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October 10, 2024
Teva To Pay $450M To Settle Kickback Cases
Pharmaceutical giant Teva will pay $450 million to settle allegations it violated the False Claims Act by fixing the prices of several generic drugs and by raising the price of a multiple sclerosis treatment while covering Medicare recipients' copays, civil prosecutors said Thursday.
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October 09, 2024
Montana High Court Upholds Temporary Abortion Ban Blocks
The Montana Supreme Court late Wednesday handed down two decisions upholding a state district court's temporary injunctions blocking numerous abortion restrictions stemming from four pieces of state legislation while the case plays out in lower courts.
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October 09, 2024
Patients' Families Say No Expert Needed In Transplant Case
The families of patients who died while on an organ donor waiting list are urging a Texas state court to deny a surgeon's bid to toss their suit aimed at blocking him from altering or destroying records, saying because their suit does not make any claims for damages, they do not need an expert report.
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October 09, 2024
Ohio Worker Says Health Co. Doesn't Pay OT Or Promised Wages
An Ohio healthcare worker has accused provider CareStar Inc. of unlawfully denying her and a proposed class of current and former employees overtime pay and failing to fork over supplemental pay the company promised her.
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October 09, 2024
CVS, United Health Seek Removal Of FTC's Khan In PBM Case
Major pharmacy benefit manager owners are calling on a Federal Trade Commission administrative judge to disqualify three Democratic FTC commissioners from the agency's in-house lawsuit accusing them of artificially inflating insulin prices, arguing that the commissioners have repeatedly vilified PBMs and prejudged the proceeding.
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October 09, 2024
Companies' Kratom Supplements Are Addictive, Class Says
A proposed class of buyers is suing Thang Botanicals Inc. and FTLS Holdings in California federal court, alleging that they failed to disclose that their kratom-derived 7ΩHMZ products are as addictive as opioids, if not more.
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October 09, 2024
GSK Settles Nearly All State Zantac Cases For Up To $2.2B
GSK said Wednesday that it will pay up to $2.2 billion to settle roughly 80,000 state court cases claiming Zantac heartburn medication or the generic ranitidine caused them to develop cancer.
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October 09, 2024
Lead Test Maker Vows Compliance As $42M Deal Approved
The general counsel of Magellan Diagnostics promised Wednesday that the medical device maker "will be better," as a Boston federal judge officially sentenced the company for hiding flaws in its lead-testing kits, signing off on a $42 million plea agreement.
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October 08, 2024
Cedars-Sinai OB-GYN Accused Of Abusing, Harassing Patients
A Beverly Hills, California-based obstetrician-gynecologist who practiced at Cedars-Sinai Medical Center has been accused of sexually assaulting, battering and harassing hundreds of patients under his care, according to a suit filed Monday in Los Angeles County Superior Court.
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October 08, 2024
$424M Medicare Fraud Suspect Asks NJ Court To Modify Bail
The lead suspect charged in a $424 million international telehealth fraud scheme has asked a New Jersey federal judge for more freedom while out on house arrest in Florida, requesting to attend religious services, go to a gym, have unmonitored communications with his counsel, and to work.
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October 08, 2024
Military Health Plans Deny They Were Overpaid On DOD Deal
Five military healthcare plan providers have asked the Maine federal court to dismiss the U.S. Department of Justice's claims that they were overpaid for healthcare services, arguing they were paid exactly what they were owed under their fixed-price contracts.
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October 08, 2024
Jackson, Kagan Target Loper Bright In Ghost Gun Case
U.S. Supreme Court Justice Ketanji Brown Jackson was uncharacteristically quiet during initial arguments Tuesday over the federal government's authority to regulate ghost guns. While her colleagues debated whether kits of unassembled parts qualify as firearms, she waited patiently to post a different question: Can courts now toss agency interpretations they don't like?
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October 08, 2024
Shkreli Loss, PBM Conspiracy Claims And Ga. Abortion Ban
The U.S. Supreme Court rejected petitions by an Alabama fertility clinic and disgraced pharmaceutical executive Martin Shkreli, among others, in a set of denial orders issued Monday. Meanwhile, in Texas, major drug manufacturers and pharmacy benefit managers have been hit with a suit by the state alleging they conspired to artificially hike the price of insulin medications.
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October 08, 2024
DOJ Sues LA Fitness Over Nationwide Accessibility Issues
The U.S. Department of Justice sued gym chain LA Fitness on Tuesday, alleging that it mistreated patrons with disabilities at its nearly 700 locations across the country, including by failing to fix broken pool lift equipment and charging caretakers additional fees.
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October 08, 2024
3rd Circ. Directs Court To Explain If Natera Ads 'Literally False'
A Third Circuit panel on Tuesday sent allegations of false advertising against medical test maker Natera back to district court, directing the judge to determine whether a jury had sufficient evidence last year to find that eight of the company's advertisements were "literally false."
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October 08, 2024
New Research Misconduct Rule May Expose, Chill Witnesses
While healthcare and life sciences attorneys largely view a new rule on research misconduct as a welcome revision, the update risks discouraging witnesses by entitling accused researchers to interview transcripts.
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October 08, 2024
Why Health Attys Are Watching The Rise Of Animal Healthcare
Healthcare attorneys are translating their traditional healthcare dealmaking skills into animal health transactions as the space grows.
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October 08, 2024
Senior Renters Say Mass. Facility Charged Exorbitant Fees
A proposed class of low-income, elderly residents at an assisted living facility have told a Massachusetts federal court the facility's owner and operators charged an illegal "ancillary fee" calculated to extract all but a $100 monthly allowance from residents.
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October 08, 2024
AGs Slam TikTok With Youth Addiction, Fraud Claims
More than a dozen states have sued TikTok, alleging the popular social media platform targets young users and manipulates them into becoming habitual users while downplaying the harmful effects it can have on mental health and development.
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October 07, 2024
Merck Immune For 'Inflated' Vax Claims To FDA, 3rd Circ. Says
A divided Third Circuit panel inoculated Merck from claims that it tried to prevent competition by making inflated declarations to federal regulators about its mumps vaccine, with the majority ruling Monday that because Merck convinced federal regulators it had extended the vaccine's long-term potency, those assertions can't have been an anticompetitive "sham."
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October 07, 2024
Mich. Supreme Court Snapshot: Insulin Prices, Disney Audit
The Michigan Supreme Court's first oral argument session of the 2024-25 term promises to be a busy one, involving an investigation into Eli Lilly's insulin prices with big implications for the scope of Michigan's consumer protection law and Disney's appeal of an order to turn over decades-old uncashed checks to the state treasurer.
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October 07, 2024
Trio Of 1st Circ. Criminal Cases Turned Away By Top Court
The U.S. Supreme Court on Monday declined to review three white collar cases on appeal from the First Circuit, including challenges to a cryptocurrency founder's conviction for investor theft and an Illinois attorney's fraud and money laundering conspiracy verdict.
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October 07, 2024
Ga. Justices Revive State Abortion Ban During Appeal
The Supreme Court of Georgia on Monday temporarily reinstated the state's abortion ban, just one week after it was struck down for a second time by a Fulton County judge who said the law infringed on Georgians' constitutional right to privacy.
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October 07, 2024
Health Co. Strikes Deals To Exit Unpaid Wage Suits
A healthcare company and its subsidiaries settled several lawsuits alleging they failed to provide workers with uninterrupted meal breaks and miscalculated overtime wages, according to filings in federal courts.
Expert Analysis
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3rd Circ.'s Geico Ruling May Encourage Healthcare Arbitration
The Third Circuit's recent decision in Geico v. Mount Prospect, finding that claims under New Jersey's Insurance Fraud Prevention Act can be arbitrated, strengthens arbitration as a viable alternative to litigation, even though it is not necessarily always a more favorable forum, say Khaled Klele and Jessica Osterlof at McCarter & English.
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Proposed Cannabis Reschedule Sidesteps State Law Effects
The U.S. Department of Justice's recent proposal to move cannabis to Schedule III of the Controlled Substances Act provides certain benefits, but its failure to address how the rescheduling would interact with existing state cannabis laws disappointed industry participants hoping for clarity on this crucial question, says Ian Stewart at Wilson Elser.
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A Changing Regulatory Landscape For Weight Loss Drugs
As drugs originally approved to treat diabetes become increasingly popular for weight loss purposes, federal and state regulators and payors are increasing their focus on how these drugs are prescribed, and industry participants should pay close attention to rapidly evolving compliance requirements, say attorneys at Goodwin.
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Opioid Suits Offer Case Study In Abatement Expert Testimony
Settlements in the opioid multidistrict litigation provide useful insight into leveraging expert discovery on abatement in public nuisance cases, and would not have been successful without testimony on the costs necessary to lessen the harms of the opioid crisis, says David Burnett at DiCello Levitt.
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How HHS Discrimination Rule Affects Gender-Affirming Care
The U.S. Department of Health and Human Services' new final rule, which reinterprets the Affordable Care Act's anti-discrimination provision, greatly clarifies protections for gender-affirming care and will require compliance considerations from sponsors and administrators of most group health plans, say attorneys at McDermott.
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FTC Noncompete Rule's Impact On Healthcare Nonprofits
Healthcare entities that are nonprofit or tax-exempt and thus outside of the pending Federal Trade Commission noncompete rule's reach should evaluate a number of potential risk factors and impacts, starting by assessing their own status, say Ben Shook and Tania Archer at Moore & Van Allen.
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Key Takeaways From FDA Final Rule On Lab-Developed Tests
Michele Buenafe and Dennis Gucciardo at Morgan Lewis discuss potential consequences of the U.S. Food and Drug Administration's recently finalized rule regulating lab-developed tests as medical devices, and explain the rule's phaseout policy for enforcement discretion.
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Assessing HHS' Stance On Rare Disease Patient Assistance
The U.S. Department of Health and Human Services' recent advisory opinion, temporarily blessing manufacturer-supported copay funds for rare disease patients, carves a narrow path for single-donor funds, but charities and their donors may require additional assistance to navigate programs for such patients, says Mary Kohler at Kohler Health Law.
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Are Concessions In FDA's Lab-Developed Tests Rule Enough?
Although the U.S. Food and Drug Administration's new policy for laboratory-developed tests included major strategic concessions to help balance patient safety, access and diagnostic innovation, the new rule may well face significant legal challenges in court, say Dominick DiSabatino and Audrey Mercer at Sheppard Mullin.
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8 Questions To Ask Before Final CISA Breach Reporting Rule
The Cybersecurity and Infrastructure Security Agency’s recently proposed cyber incident reporting requirements for critical infrastructure entities represent the overall approach CISA will take in its final rule, so companies should be asking key compliance questions now and preparing for a more complicated reporting regime, say Arianna Evers and Shannon Mercer at WilmerHale.
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Mid-2024 FCA Enforcement And Litigation Trends To Watch
Reviewing notable False Claims Act trends and enforcement efforts in the last year and a half reveals that healthcare is a key enforcement priority for the U.S. Department of Justice, and the road ahead may bring clarification on Anti-Kickback Statute causation and willfulness standards, along with increased focus on private equity, cybersecurity and self-disclosure, say attorneys at Epstein Becker.
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Online Portal Helps Fortify Feds' Unfair Health Practices Fight
The Federal Trade Commission, U.S. Justice Department and the U.S. Department of Health and Human Services recently launched an online portal where the public can report potentially unfair healthcare practices, effectively maximizing enforcers' abilities to police anti-competitive actions that can drive up healthcare costs and chill innovation, say attorneys at Seyfarth.
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McKesson May Change How AKS-Based FCA Claims Are Pled
The Second Circuit’s analysis in U.S. v. McKesson, an Anti-Kickback Statute-based False Claims Act case, provides guidance for both relators and defendants parsing scienter-related allegations, say Li Yu at Dicello Levitt, Ellen London at London & Stout, and Erica Hitchings at Whistleblower Law.