A federal appeals court has revived a whistleblower lawsuit alleging four drugmakers overcharged for medications under the 340B program.
In a 3-0 decision, the 9th U.S. Circuit Court of Appeals ruled that AbbVie, AstraZeneca, Novartis and Sanofi must face claims they violated the False Claims Act through their involvement in the 340B Drug Pricing Program.
The lawsuit was brought by Roseville, Calif.-based Adventist Health System/West. The system alleged the drugmakers’ pricing practices led Medicare and Medicaid to pay inflated reimbursements over multiple years.
The appeals court ruled that while providers cannot sue drugmakers directly under the 340B statute, they can pursue claims under the False Claims Act if alleged overcharges caused financial loss to the government.
The decision overturns a March 2024 ruling from the U.S. District Court for the Central District of California that dismissed the case. The matter will now return to the lower court.
AstraZeneca declined to comment, citing active litigation. AbbVie, Novartis and Sanofi did not respond to requests for comment.
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