Ninth Circuit Opens Door to FCA Liability for 340B Overcharges — New Legal Pathway for FQHCs
The Ninth Circuit unanimously reversed a dismissal in United States ex rel. Adventist Health System v. AbbVie, ruling that qui tam False Claims Act suits can proceed against pharmaceutical manufacturers that allegedly overcharge 340B covered entities above the statutory ceiling price.
This creates a new private enforcement mechanism — previously only HRSA could enforce 340B ceiling price compliance. FQHCs can now pursue treble damages against manufacturers overcharging on 340B drugs.
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FQHC Talent. (2026, March 17). Ninth Circuit Opens Door to FCA Liability for 340B Overcharges — New Legal Pathway for FQHCs. Primary source: Sidley Austin LLP. Retrieved July 28, 2026, from https://www.fqhctalent.com/intel/ninth-circuit-fca-340b-overcharges-march-2026
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