<div id="readability-page-1">The U.S. Supreme Court declined to hear an appeal from Eli Lilly &amp; Co. , leaving in place a $194 million whistleblower judgment tied to allegations that the drugmaker underpaid Medicaid rebates by misreporting drug pricing data. • Eli Lilly stock is trending lower. Why is LLY stock trading lower? The Bloomberg report on Monday noted that the justices issued the decision without comment, rejecting Lilly's broader constitutional challenge to the federal False Claims Act. The company argued the law improperly allows private individuals to sue on behalf of the government and receive a portion of any financial recovery. According to Department of Justice data cited in the appeal, whistleblowers filed a record 979 False Claims Act lawsuits in fiscal 2024, while settlements and judgments topped $2.9 billion. Read Also: This Weight-Loss Drug Challenger Could Follow Eli Lilly's Playbook: Analyst <h2>Whistleblower Alleged Medicaid Rebate Underpayments</h2> The dispute stemmed from Medicaid drug rebate calculations that pharmaceutical companies must provide to state programs. Whistleblower Ronald Streck accused Lilly of understating revenue received from wholesalers, which allegedly reduced rebate payments owed to Medicaid programs by roughly $61 million. A federal jury in Chicago ultimately found Lilly liable, resulting in the $194 million award. The report added that Lilly argued during the appeal that Streck had pursued similar pharmaceutical pricing cases for years and described him as a &#34;private bounty hunter.&#34; The company also maintained that its pricing approach reflected a common industry practice that had previously been upheld by four federal judges in a separate case involving the same whistleblower. <h2>Conservative Justices Previously Questioned False Claims Act</h2> Streck urged the Supreme Court to reject Lilly's petition, arguing there was no reason for the court to revisit the jury's findings or reassess evidence already weighed during trial. The Department of Justice declined to intervene in the case, leaving Streck to litigate independently under provisions of the False Claims Act that permit private whistleblower suits. LLY Price Action: Eli Lilly ( LLY ) shares were down 1.64% at $988.42 at the time of publication on Monday, according to Benzinga Pro. Over the past month, Eli Lilly ( LLY ) stock has gained about 6.6% versus a 3.8% rise in the S&amp;P 500 and is down roughly 8% year-to-date compared to the index’s 7.3% gain. Photo: Jonathan Weiss / Shutterstock Read Also: Ondas Bets Big On AI Battlefield Software With Omnisys Buyout </div>

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The U.S. Supreme Court has rejected Eli Lilly's appeal regarding a $194 million whistleblower judgment for underpaying Medicaid rebates by misreporting drug pricing. The decision upholds the federal False Claims Act, allowing private individuals to sue on behalf of the government. Eli Lilly's stock fell 1.64% to $988.42 following the ruling, with the company arguing that the whistleblower's claims were unfounded and that its pricing practices were industry-standard.

Supreme Court Rejects Eli Lilly Appeal In Medicaid Fraud Case