Barclay Damon
Barclay Damon

With Firm’s Help, Pharmacy Stands Up to Government Tactics

A pharmacy learned that employees of the Office of the Medicaid Inspector General were calling its clients, discouraging them from continuing to patronize the business, claiming there was a criminal investigation and that they anticipated the pharmacy would soon be excluded from the Medicaid program. But the pharmacy was facing no criminal charges and had already reached a consent order for minor regulatory violations.

Our attorneys took up the case for the pharmacy, pointing out that the Office of the Medicaid Inspector General as well as other agencies and several officials had violated the company’s due process rights. The lawsuit also alleged defamation and slander, libel per se and tortious interference with contracts.

When the state tried to get the case dismissed, claiming immunity, a federal judge ruled for our client, saying the complaint could proceed.

The decision represented a significant precedent for the recognition of improper and unauthorized actions of state auditors and opens the door for federal jurisdiction over state and federal claims brought by providers seeking protection from overzealous government agents.


For More Information on Barclay Damon's Health Care & Human Services Practice Area:

Melissa Zambri

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f: 518.427.3463

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Susan Benz

p: 716.858.3812

f: 716.768.2812

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