Third AWP trial set to begin Monday in Montgomery

posted on:
February 5, 2009

Wendi Lewis


MONTGOMERY, ALA. (February 5, 2009) – Beasley Allen is preparing to represent the State of Alabama in its third trial in the Average Wholesale Price (AWP) litigation, in which pharmaceutical companies are accused of defrauding the state Medicaid system. The trial, which will begin Monday, Feb. 9, in Montgomery County Circuit Court, alleged that Sandoz Pharmaceuticals, Inc. provided inaccurate prices for Medicaid reimbursement, costing taxpayers millions of dollars.

Beasley Allen is representing the State of Alabama against a total of 72 pharmaceutical companies in the AWP litigation. To date, three other companies have gone to trial, in two separate cases. In February 2008, a state court jury awarded Alabama a $215 million verdict against Astra Zeneca PLC. The drug manufacturer appealed the verdict.

Following on the heels of the AstraZeneca verdict, in July 2008 Beasley Allen obtained a verdict in favor of the state against GlaxoSmithKline and Novartis. After brief deliberations, the jury in this case found the pharmaceutical companies liable for fraud and awarded $114 million in compensatory damages.

In addition to the trial verdicts, to date seven additional companies have reached settlement agreements with the State of Alabama totaling more than $35 million. Companies that have settled include Amgen, Inc.; Bayer, Boehringer/Roxane, Bristol-Meyers Squibb Company, Dey, LP; Ethex Corporation and KV Pharmaceutical Company, and Takeda Pharmaceuticals North America, Inc.

Twenty-two other states currently have pending AWP suits and Beasley Allen has been tapped to represent 7 other states in their pending AWP Litigation.

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