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Covington Secures Dismissal Of False Claims Act Whistleblower Suit for Gilead

January 21, 2015

WASHINGTON, DC, January 21, 2015 — A California federal judge recently dismissed allegations made by whistleblowers that Gilead Sciences Inc. defrauded the government. Covington represented Gilead in the case.

U.S. District Judge Edward Chen said in his ruling that the whistleblowers’ allegations over poor drug quality, false certifications and violations of FDA safety regulations are insufficient to state a claim under the False Claims Act (FCA). “FCA liability cannot be based on fraudulent statements made before one regulatory agency and from that implying a certification putatively made to the payor agency where there is neither an express certification nor condition of payment,” Judge Chen ruled. “To do so,” the Court found, “would transform the FCA into an all-purpose, anti-fraud statute which it is not.”

“Gilead is pleased with the court’s decision, which follows the government’s decision to decline to intervene in this matter. Gilead is confident in the safety of its products and will vigorously defend against these allegations should the plaintiff continue to pursue them,” the company said in a statement.

Gilead is a biopharmaceutical company that discovers, develops, and commercializes innovative therapeutics in areas of unmet medical need.

The Covington team was led by Ethan Posner and included Joshua DeBold, Eric Phelps, and Gretchen Hoff Varner.

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