What did a jury find about Lilly and Medicaid rebates?
A federal jury found Lilly liable under the False Claims Act for underpaying Medicaid rebates, awarding $61 million trebled to $184 million — a judgment exceeding $220 million with interest after the Supreme Court declined to hear Lilly's appeal.
In a case brought in 2014 by Ronald Streck, a former wholesaler executive, a federal jury in 2022 found Lilly liable under the False Claims Act for underpaying Medicaid rebates. The allegation was that Lilly made retroactive price increases and miscalculated its average manufacturer price, reducing the rebates it owed. The jury awarded $61 million, which was trebled to about $184 million.
In September 2025 the Seventh Circuit upheld the verdict, with the judge writing that "overcomplicated and hyper technical interpretations cannot defeat common-sense plain readings of text." On May 18, 2026 the Supreme Court declined to hear Lilly's appeal, leaving a judgment that exceeds $220 million with interest. Lilly had noted that a separate jury in a related Philadelphia case brought by the same whistleblower reached a different result.