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Eli Lilly Uncovers $200M Rebate Fraud Scheme Tied to Diabetes Drug

Eli Lilly filed a civil lawsuit Tuesday alleging a coordinated rebate fraud scheme cost the pharmaceutical company more than $200 million tied to its diabetes medication Trulicity. The company accused several bishops at the Church of God in Christ, a major Pentecostal denomination, of participating in the plot. The 66-page complaint was filed in federal court. According to the lawsuit, a Florida mail-order pharmacy called DrugPlace purchased large quantities of Trulicity through authorized distributors while claiming the drugs went to church members. Simultaneously, Lilly alleges DrugPlace sold the medication on the secondary market while collecting fraudulent rebates. Community Health Initiative, an organization affiliated with the church, allegedly worked with DrugPlace in the scheme. Both entities operate from the same Tennessee address. Lilly claims many patients cited in false rebate submissions either did not exist or could not be verified. The church itself was not named as a defendant.