Regeneron Gets Court to Impose Tougher Kickback Standard (1)

Regeneron Pharmaceuticals Inc. convinced the First Circuit to impose a higher causation standard in the government’s False Claims Act case alleging a drug kickback scheme, according to a Tuesday ruling.

Regeneron showed that to be found liable, the government must demonstrate that allegedly false claims for reimbursement from Medicare wouldn’t have been made “but for” kickbacks, the US Court of Appeals for the First Circuit said.

The First Circuit now arguably joins the Sixth and Eighth circuits, which have adopted but-for causation. Regeneron had urged the First Circuit not to adopt the Third Circuit’s less demanding standard for plaintiffs.

The ...