Regeneron Can Raise Recoupment Counterclaims in Drug Fraud Suit

Regeneron Pharmaceuticals Inc. is cleared to pursue counterclaims seeking alleged overpayments to Medicaid in a False Claims Act suit accusing the company of overcharging federal health-care programs for Eylea, which treats age-related vision impairment.

Regeneron’s counterclaims against several states are allowed because a factual overlap exists between both sides’ claims, so by pursuing their claims the states waived their sovereign immunity on the issue, the US District Court for the District of Massachusetts said in a Monday order.

The states’ claims against Regeneron and the company’s counterclaims focus on a single factual dispute, which concerns whether Regeneron’s method for classifying ...