Our law firm, working with state attorneys general in eight states, has had a great deal of success in the Medicaid fraud litigation, referred to as the “AWP” litigation. Recently, in one of the AWP prosecuting states, the trial court refused to dismiss any claims that our firm is pursuing against the pharmaceutical manufacturer Defendants. In that case, in which we represented the state, a group of AWP Defendants sought to dismiss the state’s claims. They worked very hard, trying to postpone all of the upcoming trials until the state’s Supreme Court could rule on a pending appeal. That appeal was filed by another AWP Defendant in a related case. In the Feb. 25, 2014 order, the trial court allowed us, on behalf of the state, to proceed on its Medicaid Fraud Control Act, Consumer Protection Act, common law and injunctive relief claims.
The trial court determined that the Defendants had likely caused false claims to be submitted by pharmacies to the state’s Medicaid division. The court further found the state’s settlement attempts to be in satisfaction of the pre-suit negotiation requirement of the Consumer Protection Act, despite the state not technically being subject to the rule.
The court found all of the state’s injunctive relief to be viable, specifically the AWP Defendants’ past and present AWP and WAC price reporting practices. Accordingly, the state will pursue a stay of the Defendants’ price reporting practices, damages for overpayment, along with restitution and an accounting for all ill-gotten gains that flowed from the illegal activities. The ruling puts the state on solid footing as it moves toward closing out the remaining AWP Defendants. If you need more information on the states’ AWP litigation, contact Clay Barnett, a lawyer in our firm’s Consumer Fraud Section, at 800-898-2034 or by email at Clay.Barnett@beasleyallen.com.
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