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April 08, 2022

Seventh Circuit Upholds Safeway’s Win in False Claims Inflated Drug Pricing Case

The Seventh Circuit issued an opinion on April 5 finding that Safeway, Inc. did not commit fraud when it reported “usual and customary” prices to Medicare and Medicaid that were higher than the prices it charged most uninsured consumers for prescription drugs. A divided panel upheld the district court’s entry of summary judgment in Safeway’s favor. According to the complaint, Safeway charged the government its list prices even though it charged most cash-paying customers lower prices through price matching and loyalty programs. The court reasoned that an interpretation of “usual and customary” that excludes price matching was reasonable.