The US Supreme Court rejects Eli Lilly & Co.’s challenge to a Civil War–era federal whistleblower law used to bring claims over Medicaid fraud. The justices uphold a lower-court decision that leaves in place a large monetary judgment against the company stemming from a whistleblower lawsuit alleging Eli Lilly misreported drug prices to Medicaid. Multiple outlets report that the award is in the range of roughly $183 million to $194 million, reflecting differences in how the final figure is reported. The Supreme Court’s action is a denial of Lilly’s appeal, meaning the lower court’s ruling stands.
The dispute centers on the government’s and whistleblower’s use of the False Claims Act framework, which allows private parties to sue on behalf of the government for fraud and share in recoveries. Lilly argued against the law’s application and sought Supreme Court review, but the justices do not overturn the decision. As a result, the whistleblower case and its penalty amount remain in effect, absent further proceedings.
