A federal appeals court has reinstated a False Claims Act suit against a pharmaceutical supplier, finding the suit was wrongly dismissed based on a rule that bars such claims when the fraud allegations are already public.

The U.S. Court of Appeals for the Third Circuit reinstated the suit against PharMerica Corp. of Louisville, Kentucky, after a judge below dismissed it under the public disclosure bar, which prohibits a relator from bringing an FCA case based on a fraud that has already been disclosed publicly.

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