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340B Meets The FCA In The Ninth Circuit: What The Pharmaceutical Industry And Investors Need To Know OnPoint Thu Sep 03 2026 The Ninth Circuit's Adventist Decision Lets 340B Covered Entities Bring FCA Qui Tam Suits Over Drug Pricing, Raising New Risks For Manufacturers And Investors.
The Ninth Circuit's landmark decision in Adventist Health System v. AbbVie Inc. has opened a new front in healthcare fraud enforcement by allowing 340B covered entities to bring False Claims Act qui tam suits against drug manufacturers over alleged pricing violations. This ruling, combined with the court's earlier EKRA decision in Schena, signals an expanding landscape of federal healthcare fraud theories that narrows traditional defenses and creates significant litigation exposure for pharmaceutical compan
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