MONTGOMERY — The jury in the Medicaid pharmaceutical fraud trial in Montgomery just moments ago found in favor of Alabama and recommended compensatory damages of $40 million and punitive damages of $175 million.

The verdict was against AstraZeneca Corp., a drug manufacturer the state sued along with about 75 other drug manufacturers, alleging they overcharged Alabama’s Medicaid program for prescription drugs.

AstraZeneca was the first company to go to trial. It said it was not liable because it doesn't sell directly to the state.

Plaintiff’s attorney Jere Beasley, who was hired by the state, asked the jury after closing arguments for $28 million in compensatory damages plus $11 million in interest and an additional $140 million to $250 million in punitive damages to punish the company for its alleged behavior.

AstraZeneca in a response said the company plans to appeal to the Alabama Supreme Court because it believes the lawsuit is legally and factually unfounded. The case was based on the “misleading premise” that the Alabama State Medicaid Agency did not understand the basics on how drug prices are established and reported, AstraZeneca’s statement said.

“We believe numerous errors occurred during the proceedings and that the verdict should not be upheld,” the company said. “AstraZeneca has fully complied with the law, government guidelines, and contracts that govern Medicaid pricing.”

The company said that Montgomery County Circuit Judge Charles Price ruled that “important information on the workings of the Alabama pharmacy system” be withheld throughout the trial. Price also permitted evidence of earlier, unrelated settlements and proceedings in clear violation of the rules of evidence, the company said.

“These and other reversible errors were compounded by negative public comments by the trial lawyers and state leaders prior to the jury selection process,” AstraZeneca spokesman Steve Hahnsaid.

In the last two years alone, AstraZeneca helped more than 28,800 Alabama patients receive more than $25.5 million in savings through its prescription savings programs, Hahn said.