Supreme Court to weigh case that could challenge U.S. anti-fraud law

In an effort to compete, SuperValu and Safeway extended discounts and price-matching deals to cash-paying customers, but charged Medicare and Medicaid the customary prices for the medicines. Whistleblowers in both instances alleged the chains knowingly cheated Medicare and Medicaid out of $200 million,The 7th U.S. Circuit Court of Appeals ruled the companies had not "knowingly" made false claims and misinterpreted the law in the absence of solid guidance.

"The rule it proposes would create a Wild West of ramifications for any well-intentioned and legitimate hospital or insurance provider that seeks to serve Americans in partnership with the government," they wrote.Other legal experts say the case could "cripple [the government's] ability to prosecute and deter fraud."

"If the Supreme Court affirms the Seventh Circuit's decision, the Act's intimidating penalties and extremely effective qui tam suits will be diluted beyond judicial repair," per"The plaintiff’s bar is worried, and more importantly, everyone should be worried if the Supreme Court upholds this case," Tony Munter, an attorney with Price Benowitz"The idea that you can know you are lying to the government, take the government's money, and then later come up with...

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