Judge freezes assets in test strip rebate case
By HME News Staff
Updated Tue November 19, 2019
INDIANAPOLIS - A judge has granted a motion to freeze certain assets of Priority Healthcare Corp., the latest development in a lawsuit over “unwarranted rebates.”
In a lawsuit filed in September 2018, Roche, a manufacturer of diabetes testing supplies, says it paid $37.5 million of “unwarranted” rebates to insurance companies and their pharmacy benefit managers for claims submitted by PHC between Jan. 1, 2013, and the end of the first quarter of 2018.
This latest motion, issued by the U.S. District Court for the Northern District of Alabama on Nov. 7: prohibits PHC from “transferring, liquidating, pledging, loaning…or otherwise disposing of any funds, shares of stock, or other assets,” held in certain accounts at various financial institutions; orders the company to return of any funds or assets disbursed or transferred from those accounts after Dec. 31, 2018; and orders it to verify the return of those assets within 48 hours by emailing Geoffrey Potter of Patterson Belknap, the attorney for Roche.
The motion also orders the financial institutions, SunTrust Banks, TD Ameritrade and E*Trade Securities, to liquidate all assets in the accounts and deposit the refunds into the Registry Fund of the Treasury where they will be held in trust.
PHC is a network of pharmacies in Alabama, Mississippi and Arkansas.
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