Drug Companies Agree To Reimbursement of Taxpayers

The attorney general of Alabama has announced that 14 major drug companies will pay Alabama $89 million to settle a lawsuit accusing them of defrauding the state Medicaid agency. This lawsuit brought on behalf of the taxpayers of the state of Alabama is one of many throughout the United States brought by state’s Attorney Generals accusing drug manufactures of overcharging and defrauding states for the purchase of drugs used in state sponsored medicaid and health care programs. The lawsuits essentially allege a pattern of fraud by drug manufacturers over many years.
The Alabama settlement followed a series of trial victories in Montgomery County Circuit Court against other drug companies accused of similar activities. The state of Alabama was represented by private law firms who undertook the representation and absorbed the risk of a losing verdict.
The companies agreeing to the Alabama settlement are: Abbott Laboratories, Schering-Plough Corp., Warrick Pharmaceuticals Corp., TEVA Pharmaceuticals USA, IVAX Corp., IVAX Pharmaceuticals, Barr Laboratories, Aventis Pharmaceuticals, Aventis Behring, ZLB Behring, Sanofi-Synthelabo, Forest Laboratories, Forest Pharmaceuticals, Baxter Healthcare Corp. and Baxter International.
Earlier this year, an Alabama jury ordered the generic drug manufacturer Sandoz to pay the state more than $78 million. That trial followed verdicts in 2008 against AstraZeneca, GlaxoSmithKline and Novartis for $215 million, $81 million and $33 million, respectively.
These lawsuits and settlements will recoup millions of dollars for the taxpayers of Alabama and should prevent price gouging and fraud in the future.