On November 21, 2025, the Seventh Circuit denied rehearing of its ruling that Eli Lilly violated the False Claims Act by relying on a reasonable interpretation of ambiguous Medicaid Drug Rebate Program regulations. The decision was a setback for WLF, which filed an amicus brief supporting rehearing. In it, WLF contended that the decision violates due process principles of fair notice by punishing manufacturers for objectively reasonable conduct amid regulatory uncertainty. That holding, WLF warned, risks stifling pharmaceutical innovation and invites abusive copycat litigation.
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