$114,000,000 Verdict in a Medicaid Fraud Case | Landmark Verdicts | Beasley Allen
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.