340B Litigation Roundup - Contract Pharmacy Disputes

McDermott Will & Emery published its weekly 340B litigation roundup covering March 24-30, 2026, summarizing developments across more than 50 pending cases involving the 340B drug pricing program. Drug manufacturers filed new suits challenging state contract pharmacy laws in Washington and pursued appeals in Tennessee cases, while four Utah cases advanced with plaintiffs responding to show cause orders.

FCA Claims Related to 340B Drug Pricing Program May Proceed

The Ninth Circuit reversed dismissal of a qui tam action in United States ex rel. Adventist Health System of West v. AbbVie Inc., holding that FCA claims tied to alleged 340B ceiling-price noncompliance may proceed at the pleading stage. The court rejected arguments that the absence of a private right of action under 340B bars FCA suits, finding FCA claims are 'free-standing and independent' and can proceed where relator alleges government overpayment harm.

Anthem Policy Penalizes In-Network Facilities for Out-of-Network Provider Use

Anthem (Elevance Health) implemented a Facility Administrative Policy effective January 1, 2026, imposing a 10% penalty on in-network facilities that use out-of-network providers for Anthem's commercial plan members. The policy applies to Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri, Nevada, New Hampshire, Ohio, and Wisconsin, with California expansion planned for June 1, 2026. Facilities may face network termination for continued violations.

New ALF Specialty License for Memory Care Services

Florida Senate Bill CS/CS/SB 1404 proposes a new Assisted Living Facility (ALF) specialty license designation for memory care services. The bill would require ALFs serving memory care residents or advertising such services to obtain the designation from the Florida Agency for Health Care Administration (AHCA). AHCA must establish minimum standards including staff training requirements, safety protocols, and advertising restrictions by July 1, 2027.

Lakeview Water Corporation Service Area Expansion Application

Lakeview Water Corporation filed an application with the Utah Public Service Commission requesting approval to expand its service area. The PSC has opened a public comment period on the application, with comments due April 1, 2026. The Division of Public Utilities has also filed comments in the proceeding.

Sam Ray v. Legacy Sweetwater - Water Utility Complaint

The Utah Public Service Commission processed a formal water service complaint (Docket No. 25-2280-04) filed by Sam Ray against Legacy Sweetwater, Inc. The utility filed an Answer and Motion to Dismiss, and the Division of Public Utilities submitted comments. The PSC issued an Order Dismissing the Complaint on February 13, 2026, and denied the Complainant's Request for Review on April 1, 2026.

Zayo Network LLC Indirect Transfer of Control Joint Notice

The Utah Public Service Commission received a Joint Notice from Zayo Network Services LLC and affiliated entities (DigitalBridge Group, Fiber AssetCo LLC, Zayo Group LLC, ENA Healthcare Services LLC, and Duncan Holdco LLC) regarding an indirect transfer of control to Duncan Holdco LLC. The Division of Public Utilities filed comments on April 1, 2026. An Action Request is pending with a response deadline of April 17, 2026.

Telecom Indirect Transfer of Control Joint Notice

The Utah Public Service Commission posted a joint notice of indirect transfer of control involving DigitalBridge Group, Inc., Fiber AssetCo LLC, Zayo Group, LLC, ENA Healthcare Services, LLC, Zayo Network Services, LLC, and Duncan Holdco LLC. Public comments are due April 17, 2026, with an Action Request also issued on March 18, 2026.

Free learn-to-fish events at Onondaga Lake

NY DEC and Onondaga County Parks announce free family-friendly learn-to-fish events at Onondaga Lake from April 11 to September 12, 2026. The catch-and-release events are open to all ages and abilities at five locations; no fishing license or registration required, with equipment and bait provided.

Nearly 700 Acres Added to East Otto State Forest

NY DEC and The Nature Conservancy completed acquisition of 689 acres in Cattaraugus County to expand East Otto State Forest to 2,071 acres. The $2.39 million purchase was funded through the Environmental Protection Fund and supports New York's 30x30 open space conservation initiative.