Two whistleblowers can move forward with their False Claims Act suit alleging that Anthem Insurance Companies Inc. and others unlawfully received Indiana Medicaid funds, a federal district court said.

Whistleblowers John McCullough and James Holden adequately alleged materiality, which concerns whether alleged misconduct would affect a government payment decision, Judge Tanya Walton Pratt of the US District Court for the Southern District of Indiana said in an order denying motion to dismiss.

Allegations in the latest complaint are sufficient to show Indiana Medicaid wouldn’t have made payments had it known defendants “in fact” submitted false claims, the court said.

The ...

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