Novartis USA: Novartis Face Alabama Fraud Lawsuit
April 19th, 2008
The Alabama Supreme Court has ruled that Glaxo and Novartis won=92t get
separate trials in a lawsuit claiming they inflated prices paid by the
state Medicaid program. The state=92s lawsuit says the drugmakers
overstated the average wholesale price used to calculate state
Medicaid reimbursement rates to pharmacies. Alabama has sued 70
companies over similar allegations, and in February, won a $215
million jury award against AstraZeneca.
The drugmakers argued for separate trials because they face different
claims and will employ different defenses. The trial is now slated for
June 16 in Montgomery County Circuit Court. Alabama Attorney General
Troy King called the Supreme Court ruling =93good news for the people
who depend on Medicaid to provide important medical services. Now we
are going to more quickly determine if these companies took advantage
of the state,=94 King tells the Associated Press. =93Obviously, if we=92ve
got to have 70-something separate trials it would take a lot longer
and be more complicated.=94
Three years ago, King filed suit over prices for Medicaid recipients.
Beyond the trial with AstraZeneca, which is appealing, Dey and Takeda
Pharmaceuticals agreed to settle and, collectively, pay $6.75 million.
Jere Beasley, a former lieutenant governor whose law firm helped
engineer the Vioxx settlement, is representing Alabama in court.
http://www.pharmalot.com/2008/04/glaxo-and-novartis-face-alabama-fraud-suit/=
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A.L.F. Crime Investigation Agency (CIA)
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