Alabama Attorney General Release on Drug Trial Verdict

posted on:
July 1, 2008

author:
Staff

category:
Fraud

(MONTGOMERY)-Attorney General Troy King today announced a second major victory in his litigation against drug companies for massive overcharges to the Alabama Medicaid Agency.  A jury in Montgomery County Circuit Court returned a verdict in favor of the State of Alabama, finding defendants, GlaxoSmithKline and Novartis Pharmaceuticals Corp. liable for a total of $114,247,233, of which $80,989,539 is from GlaxoSmithKline and $33,257,694 is from Novartis. 

“The State of Alabama continues to achieve victories in the important work of recovering what has been stolen from the Alabama Medicaid Agency and those who depend upon that agency for their needed medicines. Again, we express our gratitude and appreciation to Medicaid Commissioner Carol Steckel for her assistance.”

On February 21, 2008, the first of the “AWP” cases to be tried resulted in a verdict for $215 million against the AstaZeneca pharmaceutical company.  On January 27, 2005, Attorney General King filed suit in Montgomery County Circuit Court against 79 pharmaceutical companies for massive overcharges to the Alabama Medicaid Agency. The Attorney General contends that the companies misreported and inflated the prices charged for prescription drugs in what is known as the “average wholesale pricing” scheme, leading the cases to be referred to as the “AWP” lawsuit. The GlaxoSmithKline and Novartis case is the second of the AWP cases to come to trial, with both being won by the State of Alabama.

“The people of Alabama can be reassured that grave injustices are being made right, that public funds taken by corporate manipulation schemes are being recovered, and that the Office of Attorney General is discharging its duty to hold accountable anyone, no matter how powerful and wealthy, who would take advantage of our state and our citizens.”

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