The most recent development in the Alabama Medicaid Fraud litigation is that Chief Judge Charles Price has ordered the State of Alabama and 17 pharmaceutical company Defendants to a mandatory mediation proceeding to occur before December 1, 2009. The very well-respected Opelika, Alabama lawyer, Phil Adams, will serve as the court appointed mediator.

Each of the 17 Defendants are scheduled for different trial dates which are set out as follows: on December 7, 2009, State of Alabama vs. Watson Laboratories, Watson Pharma, Inc., and Watson Pharmaceuticals, Inc.; on January 25, 2010, State of Alabama vs. Mylan Laboratories, Inc., Mylan Pharmaceuticals, Inc., and UDL Laboratories, Inc.; and on April 30, 2010, State of Alabama vs. Merck & Co., Inc., Wyeth Pharmaceuticals, Inc., Wyeth, Inc., ALZA Corporation, Janssen Pharmaceutical Products, L.P., Johnson & Johnson, McNeil-PPC, Inc., Ortho Biotech Products, L.P., Ortho-McNeil Pharmaceutical, Inc., Roche Laboratories, Inc., and Hoffman-LaRoche, Inc.

Every jury verdict returned in the Alabama cases has been in favor of the State of Alabama. These verdicts total $352 million to date. Also 24 drug manufacturer Defendants have settled with the State of Alabama for a total of $135 million. All of the recent jury verdicts outside of Alabama have also been in favor of the states and against the drug manufacturers. These were in favor of the State of Kentucky for $16 million against Defendant Sandoz; $9 million for the State of Wisconsin against Defendant Pharmacia; and $7 million for the State of Missouri against Schering-Plough Warrick. Therefore, considering this track record, mediation would appear to be a logical and productive event. For the sake of the citizens of Alabama and especially those on Medicaid, we certainly hope that is the case. If the mediation process is successful, we will promptly report the results.

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