Louisiana Attorney General Buddy Caldwell announced $88.4 million in settlements with 25 pharmaceutical companies in his state’s ongoing Medicaid Fraud litigation. Beasley Allen lawyers Dee Miles, Clay Barnett, Roman Shaul, Chad Stewart, and Alison Hawthorne, along with in-house counsel from the Attorney General’s office, represented Louisiana in this significant litigation. It began three years ago involving Average Wholesale Pricing (AWP). The lawsuit accused 100 drug makers and their subsidiaries of fraudulently inflating the price of drugs sold to states and reimbursed by Medicaid, overcharging the state.
Included in the recent settlements in Louisiana are Abbott Laboratories, which will pay $6.2 million; Sanofi, $7 million; Novartis and its Sandoz unit will pay a combined $20 million; Johnson & Johnson, $10 million; Par Pharmaceutical, $6 million; and Ranbaxy Laboratories, at $5 million. Including the latest settlement, since beginning the litigation Louisiana has had AWP settlements totaling $238.1 million. In a statement, Attorney General Caldwell had this to say:
These companies took advantage of the state and its taxpayers by fraudulently over-pricing and marketing prescription drugs, thereby forcing the state’s Medicaid program to grossly over-pay for those prescriptions. This kind of success sends a clear message to companies who don’t do business honestly.
Dee Miles, from our firm, who led the litigation for the Attorney General, observed:
This is another huge victory for the State of Louisiana. Pharmaceutical companies overcharging for drugs to the state’s Medicaid program – a program designed to assist the state’s neediest citizens – is egregious conduct.
The complaints were brought under the Louisiana Unfair Trade Practices and Consumer Protection Act and Louisiana’s Medical Assistance Programs Integrity Law. Attorney General Caldwell should be commended for taking the lead in this important litigation and for standing up for the people of Louisiana. He did his state a tremendous service by leading this litigation.
Source: News Release from Attorney General’s office
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