Eli Lilly Files Lawsuit Alleging $200 Million Trulicity Rebate Fraud

U.S. District Court in Miami alleging a rebate fraud scheme involving more than $200 million tied to its diabetes medication Trulicity. The company said a Florida mail-order pharmacy called DrugPlace purchased large quantities of the drug through authorized distributors while claiming the medication was dispensed to members of the Church of God in Christ.

According to the complaint, DrugPlace instead sold the Trulicity on the secondary market and collected fraudulent rebates from Lilly at the same time.

Lilly said DrugPlace worked with Community Health Initiative, an organization affiliated with the Church of God in Christ that purportedly helped church members obtain prescription drugs at reduced cost. The lawsuit states DrugPlace served as the program's pharmacy benefit manager and that both organizations operate from the same address in Tennessee.

The complaint alleges the organizations used church members to support false rebate claims and that many of the patients tied to those submissions either did not exist or could not be verified. Lilly said the scheme has been running for at least six years and that it discovered the alleged fraud in 2025 through a data analysis of rebate claims.

The analysis showed every Trulicity prescription submitted through the program reflected the same quantity and 30-day supply period, with almost no refills or claim reversals. The complaint also notes that the rebate claims involved only Trulicity, rather than a broader range of drugs typically seen in legitimate patient populations.

Lilly sued DrugPlace and Community Health, claiming they profited from buying and reselling the Trulicity because they collected both the rebate payments and the proceeds from resales. The company is seeking a temporary restraining order and a preliminary injunction.

The lawsuit also names several individuals: Readus C. , a church bishop and businessman; his son Jerry Maynard II, a church pastor and board chairman of Community Health; and Misha Maynard, vice president of operations at Community Health. It also names Paul Joshua Leight and Kevin Michael Singer, co-owners of DrugPlace.

" The spokesperson added that when the defendants learned they had been discovered, DrugPlace shuttered its Nashville pharmacy and began liquidating assets.