Reed Smith Client Alerts

A U.S. District Judge recently ruled in favor of a pharmaceutical manufacturer policyholder against its insurers regarding claims for the costs of defending and responding to a federal DOJ subpoena. If your company has been served with a federal subpoena by the DOJ investigating potential Medicare fraud, this recent decision may aid in getting your insurer to cover the costs associated in responding to the subpoena even if your company has not been charged with any health care law violations.

Authors: Lawrence S. Sher Andrew M. Weiner

Type: Client Alerts

If your company been served with a federal subpoena by the Department of Justice (DOJ) investigating potential Medicare fraud, an Illinois federal District Court may have made it easier for you to get your insurer to cover the costs of your document collection, investigation and response to the subpoena even if your company has not been charged with any health care law violations.

This week, an Illinois Federal District Court Judge handed a victory to a pharmaceutical manufacturer policyholder against its insurers in denying motions to dismiss the company’s insurance coverage claims for the costs of defending and responding to a federal U.S. DOJ subpoena aimed at obtaining documents from the company for alleged Medicare fraud as part of the Department’s nationwide investigation into “Federal health care offenses,” which included drug companies allegedly providing donations to nonprofits that help poor patients buy the drug companies’ products.