One of the practice areas our Consumer Fraud section covers involves litigation on behalf of state and municipal governments. In many of these cases, individuals are barred from bringing a consumer fraud claim, but a claim can be filed on behalf of the state government or municipality affected by the fraud.
One example of this type of claim is the firm’s work on behalf of state governments in the Average Wholesale Price (AWP) / Medicaid Fraud litigation, which 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 2500 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.
This is just one example of our work in this area. We have represented states in a number of Medicaid fraud contexts since AWP. For example, we have represented states in lawsuits where Medicaid paid for defective drugs that injured citizens and/or did not work. We have represented states where providers have submitted false claims for services they did not provide and/or billed the state for more than what they provided. We represent states that have over-reimbursed for Medicaid prescription drug reimbursements as a result of the fraudulent reporting of drug prices by health care providers, such as major chain pharmacies.
Our firm has also represented states in natural disaster and contract dispute litigation (BP Oil/Exxon, etc.) Similarly, we represent cities, towns, counties and municipalities when they have been injured and they require complex litigation to be made whole.
For more information about litigation in this area, please contact Dee Miles, Principal & Consumer Fraud Section Head, at Dee.Miles@beasleyallen.com, or Principal Alison Hawthorne at Alison.Hawthorne@beasleyallen.com.