Judge Dismisses AmerisourceBergen Whistleblower Lawsuit and Counterclaims

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A Federal District Court judge has dismissed the False Claims Act whistleblower lawsuit filed against AmerisourceBergen and its counterclaims.

The False Claim Act lawsuit filed against AmerisourceBergen Corp. by a whistleblower has been dismissed by a U.S. Federal District Court judge along with the company’s counterclaims against the employee who introduced the suit, writes John George for Philadelphia Business Journal.

Patrick Walsh, a former internal auditor at the Valley Forge wholesale pharmaceutical distribution company, filed the suit in 2011 then amended it the following year. Walsh claimed that the company and its two subsidiaries violated federal and state laws by offering inducements to independent pharmacies.

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The filings, which were heavily redacted under a court order in October 2012, stated the inducements involved providing free pill-counting machines and discounts or remunerations that allowed independent pharmacies to earn prompt pay discounts by re-dating invoices.

According to the suit, this was done to incentivize pharmacies to either enter into a prime vendor agreement or grow their existing purchasing levels with AmerisourceBergen.

In response to the lawsuit, AmerisourceBergen denied engaging in any unlawful or fraudulent activities. It then filed a counterclaim against the whistleblower alleging he had violated a confidentiality agreement by divulging “highly confidential and proprietary information related to AmerisourceBergen business to his attorneys and others.”

After close to four years of court motions and hearings, Walsh and AmerisourceBergen filed a joint motion on June 10th to have the lawsuit and counterclaims dismissed, which was granted on June 13th.

Read more about the dismissed lawsuits at Philadelphia Business Journal here, and check out previous VISTA Today coverage of AmerisourceBergen here.

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