Our firm has represented numerous states throughout the country. These cases have been handled through the Attorneys General and have involved various civil actions. Many times, individuals are barred from bringing a consumer fraud type claim but the state government is not.
These types of cases may involve issues of financial loss, consumer injury, environmental catastrophe, or a combination. Some of the most notable cases handled by Beasley Allen on behalf of states and municipalities include the AWP/Medicaid Fraud litigation; PFOA water contamination, and BP Oil Spill litigation.
Average Wholesale Price (AWP) / Medicaid Fraud
This litigation alleges a number of pharmaceutical companies were overcharging state Medicaid programs for prescription drugs. An examination of the pharmaceutical company price lists demonstrates the difference in the AWP and Wholesale Average Cost (WAC), which are the prices provided by the manufacturers for reimbursement, and the actual price or cost of the drug. In some cases, the published AWP price was more than 2,500 percent higher than the actual price, and the WAC price nearly 600 percent higher.
Beasley Allen has recovered more than $1.5 billion in settlements and jury verdicts for the states we have represented in these claims. Taxpayer dollars have been returned to the states and the agencies providing services to vulnerable residents. As a result, pharmaceutical manufacturers have completely changed the way they conduct business with states and their Medicaid agencies.
PFC Water Contamination
Beasley Allen is representing two municipal organizations over the issue of chemical contamination of the towns’ water supplies.
The Water Works and Sewer Board of Gadsden, Alabama, and the Water Works and Sewer Board of the Town of Centre, Alabama, have filed lawsuits against carpet and textile companies and their chemical suppliers alleging the companies are responsible for polluting the cities’ water supply.
The lawsuit alleges the defendants are responsible for putting perfluorooctane sulfonate (PFOS) and perfluorooactanoic acid (PFOA) into the raw water supply, causing Gadsden and Centre water to have higher readings for the man-made chemicals.
PFOS and PFOA are man-made chemical compounds that are used in the manufacture of non-stick, stain-resistant, and water-proofing coatings on fabric, cookware, firefighting foam, and a variety of other consumer products. Exposure to the chemicals over time, even in trace amounts, could promote serious health problems, the EPA warns.
In May 2016, the U.S. Environmental Protection Agency (EPA) issued new lifetime health exposure guidelines for PFOS and PFOA. After the EPA issued the new exposure limits, an advisory warning was provided to eight systems in Alabama, including Gadsden and Centre, and more than 50 nationwide.
While Beasley Allen is currently working with cities, towns, municipalities and water boards in Alabama that have been affected by PFC contamination, water systems nationwide have been affected and identified by the EPA advisory as exceeding exposure limits.
BP Oil Spill
On April 20, 2010, a massive offshore oil rig known as the Deepwater Horizon exploded and caught fire in the Gulf of Mexico, about 50 miles from Louisiana’s coastal wetlands. Firefighters and the U.S. Coast Guard fought for 2 days to contain the fire, but the rig sank on April 22, releasing nearly a million gallons of diesel fuel into the Gulf waters and creating an unstoppable leak of crude that eventually became the biggest oil disaster the U.S. has ever seen.
The Deepwater Horizon was one of 14 offshore oil rigs owned and operated by Transocean in the Gulf of Mexico. The rig was under lease to oil giant BP for exploratory drilling to the tune of $500,000 per day when the explosion occurred. 126 workers – a combined crew of Transocean and BP employees and independent contractors, were aboard the rig at the time of the explosion. Many of the workers suffered from burn injuries, broken bones, and smoke inhalation – 4 of them critically. Eleven workers were killed.
It took four months to seal the well and stop the flow of oil. The spill is considered the largest man-made environmental disaster in United States history, and one of the largest in world history. As a result, the environmental and commercial impact was unprecedented.
The oil contaminated Louisiana’s fragile wetlands. Environmental experts say that as many as 400 species of Gulf wildlife, from whales to birds, were put at risk and the threat to the Gulf ecosystem is inestimable. It may be years before the extent of the damage is truly known.
Commercial fishing and shrimping operations all along the spill area were shut down for months, putting hundreds of fishermen already hard hit by the economy out of work. The timing couldn’t have been worse, as the disaster hit the $21 billion commercial seafood industry just before harvesting season in mid-May.
Other industries affected included shipping, tourism, the restaurant industry, real estate, and commercial fishing. According to the National Oceanic and Atmospheric Administration (NOAA), there are 3.2 million recreational fishermen in the Gulf of Mexico region who took 24 million fishing trips in 2008. Commercial fishermen in the Gulf harvested more than 1 billion pounds of finfish and shellfish in 2008.
In August 2010, cases related to the BP oil spill were consolidated under U.S. District Judge Carl Barbier in New Orleans. Beasley Allen attorney Rhon Jones, who heads the firms Environmental Law section, was chosen to help direct litigation as a member of the Plaintiffs Steering Committee in the multidistrict litigation. Jones, along with Beasley Allen lawyers Parker Miller, Jenna Day Fulk and Rick Stratton also represented Alabama Governor Robert Bentley in the litigation and were also deputized by Alabama Attorney General Luther Strange as deputy attorneys general for the State of Alabama in this case.
In October 2015 Beasley Allen helped the State of Alabama reach a settlement agreement with Transocean, which owned the drilling rig used by BP, for $20 million.
In April 2016, U.S. District Judge Carl Barbier granted final approval to the settlement agreement with BP, reached in principle in July 2015. The settlement totals an estimated $20 billion and will provide relief to states that suffered environmental damage and economic losses as a result of the massive oil spill – Alabama, Louisiana, Texas, Mississippi and Florida. The State of Alabama will receive more than $2 billion in total, which includes compensation for economic losses resulting from the spill, natural resource damages, and an apportionment of Clean Water Act civil fines and penalties. This is the largest environmental settlement in U.S. history.