Average Wholesale Price (AWP) / Medicaid Fraud Litigation
This AWP 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.
Opioid abuse has reached epidemic proportions in the United States. According to the Department of Health & Human Services, 12.5 million people misused prescription opioids and 33,091 Americans died from opioid overdose in 2015 alone.
These medications provide important pain relief for many. However, over the years, drug companies inflated the effectiveness of delayed-release medications like OxyContin and downplayed their addictive properties, creating conditions ripe for abuse.
In addition to individual cases of serious injury and death related to opioid abuse, Beasley Allen is representing multiple local governments in Alabama against both manufacturers and distributors of opioids for increased costs faced by local governments related to the opioid epidemic. Providing city and county resources to battle the opioid crisis causes local governments to sustain economic damages and ongoing significant financial burdens.
These lawsuits allege the crisis was created by the pharmaceutical industry, which instead of investigating suspicious orders of prescription opiates, turned a blind eye in favor of making a profit. They intentionally misled doctors and the public about the risks of these dangerous drugs, and municipal governments are left struggling to cope with the consequences.
Contact a Pharmaceutical Pricing Attorney
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Our firm has been serving as Special Counsel to Mississippi Attorney General Jim Hood for several years on the Average Wholesale Price (AWP) litigation and …
In May 2013 Alaska’s attorney general announced an end to Average Wholesale Price (AWP) / Medicaid Fraud litigation. Alaska recovered more than $45 million for the State …
Louisiana Attorney General Buddy Caldwell has reached an $88.4 million settlement with 25 pharmaceutical companies in the state’s ongoing Medicaid Fraud litigation. Beasley Allen attorneys …
Judge Thomas L. Zebert found in favor of the State of Mississippi against Watson Pharmaceuticals in the state’s ongoing Medicaid Fraud litigation against a number …
Plaintiffs’ trial attorneys are taking on a new challenge: representing state attorneys general, health insurance plans and consumer groups in complex pharmaceutical pricing class-action suits.