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February 24, 2021
Yesterday, individual and corporate defendants litigating an insurance fraud dispute related to Roche’s blood-glucose test strips settled the matter for approximately $43.3 million. The plaintiffs, Roche Diagnostics Corporation and Roche Diabetes Care, Inc. (together, Roche), filed an unopposed motion for the entry of consent judgment and permanent injunction coupled with the litigants’ proposed agreement.
The Northern District of Alabama lawsuit originated in 2018 when Roche, a multinational healthcare business and diabetic test strip manufacturer, complained that Priority Healthcare Corporation as well as the individuals controlling the pharmacy network located primarily in Alabama and Mississippi, (collectively, Priority Care), submitted fraudulent rebate adjudications to insurance companies and pharmacy benefit managers for Roche’s test strips. In particular, the defendants purportedly billed insurance companies for blood-glucose t
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January 29, 2021 On Thursday, the court issued a decision regarding a motion to set aside default judgment in the case brought by Roche Diagnostics Corporation and others against Priority Healthcare Corporation. The decision, filed in the Northern District of Alabama, was issued after the court had issued a default judgment as a part of the discovery sanction incurred by the defendants.
The defendants include several corporate entities owned and operated Konie and Phillip Minga and were set up to submit rebate adjudications to insurance companies and pharmacy benefit managers regarding the purchase of diabetic test strips manufactured by the plaintiff Roche Diagnostics. Roche’s original complaint stated that these submissions were fraudulent and included counts for fraud, negligent misrepresentation, unjust enrichment, and violations of the Racketeer Influenced Corrupt Organizations Act.