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Wednesday, March 11, 2026

Constitutional – Sovereign immunity – False Claims Act - Massachusetts Lawyers Weekly

Where a defendant under the False Claims Act has moved for leave to amend its answer in order to assert counterclaims for recoupment, offset and unjust enrichment, the motion should be allowed in part and denied in part, as the state plaintiffs have waived their sovereign immunity but the United States did not.

“This litigation raises complex issues regarding sovereign immunity. It stems from three separate complaints under the False Claims Act (‘FCA’), 31 U.S.C. §3729 et seq., and state analogs of the FCA: one filed by the United States; one filed by Colorado, Georgia, Michigan, North Carolina, Texas, and Washington (the ‘Qui Tam States’); and one filed by Maine, Nebraska, Ohio, Oregon, and Wyoming (the ‘Non-Qui Tam States’). Plaintiffs seek to recover a portion of the reimbursements they made to physicians for sales of Eylea, a prescription drug manufactured by Defendant Regeneron Pharmaceuticals, Inc. (‘Regeneron’). The United States seeks recovery of alleged overpayments from Medicare Part B, while the Qui Tam States and Non-Qui Tam States (together, the ‘State Plaintiffs’) seek recovery of alleged overpayments from their Medicaid programs.

“The present dispute centers on Regeneron’s attempt to assert contingent counterclaims for recoupment, offset, and unjust enrichment related to its own alleged overpayments of rebates to state Medicaid programs. Regeneron has raised these counterclaims in its answer to the Non-Qui Tam States’ complaint and has moved to amend its...



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