$114,000,000 Verdict in a Medicaid Fraud Case
Medicaid Fraud | Landmark Verdict
Published August 26, 2008 1:19 PM
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GlaxoSmithKline Plc and Novartis AG inflated drug prices paid by Alabama's Medicaid program and must pay the state $114.3 million in damages, a jury ruled after a two-week civil-fraud trial. After deliberating for 5 1/2 hours, the state jury in Montgomery, Alabama, found the drugmakers liable for misrepresentation. It awarded $81 million in compensatory damages against Glaxo, the world's second-largest drugmaker, and $33.3 million in compensatory damages against Novartis. It awarded no punitive damages. The trial began June 16.