9th Circuit Denies Gilead FCA Case Rehearing
The 9th Circuit Court of Appeals has denied a Gilead request to rehear or rehear with the entire court a whistleblower case involving three of the company’s HIV drugs that was initially thrown out by a California federal court, but then was granted by the appeals court. The company’s request for a rehearing was supported by the Washington Legal Foundation (WLF), which announced the appeals court’s refusal.
WLF said its brief had argued that the initial appeals court decision adopted an overly lenient “materiality” standard for False Claims Act cases, facilitating the filing of unwarranted claims against government contractors.
Gilead has said that the whistleblowers’ complaint alleged that the company sold the government drugs representing them as approved by FDA although, according to the whistleblowers, they failed to meet certain manufacturing standards.
“But they were FDA approved and still are to this day,” the company said. “Even after multiple inspections, audits, and investigations, FDA has never withdrawn approval. The government purchasers were also unfazed. Far from seeking refunds when the allegations came to light, the government purchasers continued buying drugs from Gilead year after year.”