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NEW YORK (360Dx) — Roche this week sued the former management of Utah-based Alliance Medical Holdings over alleged insurance fraud involving Roche's diabetes test strips.

In its complaint, Roche alleged that its lower-priced test strips intended for sale via mail order were obtained by Alliance Medical, which redirected them for sale through retail pharmacies where they are sold at higher rates. Alliance Medical then submitted insurance claims representing that they had dispensed the more expensive retail strips, the lawsuit charges.

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