SCOTUS Won’t Hear Appeal of Solvay Off-Label Case
The Supreme Court is refusing to hear an appeal of a 5th Circuit Court of Appeals decision to uphold summary judgment and award costs in favor of Solvay Pharmaceuticals in a False Claims Act case. Attorneys Jennifer Thomas and Andrew Hull (Hyman, Phelps & McNamara) write in their firm’s FDA Law Blog that the whistleblowers in the case said that Solvay engaged in widespread off-label marketing and violated the anti-kickback law. The appeals court agreed with the district court that the whistleblowers failed to establish, beyond mere speculation, that any alleged kickbacks or off-label marketing caused submission of a false claim.
Thomas and Hull say the appeals court in its decision discussed the materiality element in the False Claims Act, noting that if Medicaid pays for claims without asking whether the drugs were prescribed for off-label uses, and that it is not uncommon for doctors to make off-label prescriptions, then it is likely that prescribing off-label is material to Medicaid payment decisions.
The court was not required to reach the question of materiality, they say, because it had already determined that the whistleblowers had not established causation.
The whistleblowers appealed to the Supreme Court, saying that the 5th Circuit’s comments on materiality were “sabotage of off-label enforcement” that “may well have been intentional.” The whistleblowers noted that Solvay had not raised the issue and thus the comments “suggest hostility to claims based on off-label prescription.” But the Supreme Court declined to take up the issue.