Abbott Laboratories filed a 72 page complaint in federal court last month against diabetic test strip supply wholesalers, pharmacies, and pharmacists. The complaint alleges trademark infringement, fraud, racketeering, and unfair competition. The complaint alleges that the named Defendants distributed/dispensed Freestyle testing strips intended for the international market in the United States. In doing so, Abbott alleges that the named Defendants are selling and dispensing unapproved test strips to patients in order to obtain a higher profit margin for these scripts while defrauding Abbott and various third-party payors, including insurance companies and Medicare/Medicaid. Abbott alleges it was damaged due to improper rebates paid to plan sponsors based on claims submitted by pharmacies for diabetic test strips approved for use in the United States when pharmacies actually dispensed unapproved “Diverted” Freestyle test strips intended for the international market.
In the recent days Abbott has served subpoenas to many suppliers and pharmacies that are not named in the Complaint. These subpoenas seek purchase history records from pharmacies for “Diverted” Freestyle test strips that the pharmacies may have purchased over the past 24 months. Similarly, the subpoenas to the suppliers seek information regarding the sale of “Diverted” Freestyle test strips that they have sold to pharmacies over the past 24 months. Pharmacies that receive these subpoena should be aware of their legal rights and implications of receiving a subpoena related to this Complaint. Contact Frier Levitt today to learn how we can represent your interests.
