Lawyers at Beasley Allen have been serving as Special Counsel to Mississippi Attorney General Jim Hood for several years on the Average Wholesale Price (AWP) litigation. Thus far we have recovered from 61 companies over $200 million for the State of Mississippi, including a $30 million verdict against generic pharmaceutical giant Sandoz, Inc. in 2011. That verdict was appealed by Sandoz and the Mississippi Supreme Court affirmed the verdict in full last October. Sandoz then asked the Supreme Court to rehear the appeal. On May 26, we were informed that the court had denied Sandoz’s rehearing request. This effectively exhausts the drug company’s last chance for an appeal. Attorney General Hood applauded the Mississippi Supreme Court’s refusal to reconsider its October 2015 decision that affirmed the state’s $30 million verdict. He had this to say:
It is reassuring to know that when a big drug company like Sandoz cheats the taxpayers, justice will prevail. The court made the right decision to turn back a greedy corporation that focused on its own profits at the expense of the people of Mississippi.
This case came to the Mississippi Supreme Court following a 9-day bench trial in Rankin County Chancery Court. Chancellor Tom Zebert concluded that Sandoz defrauded Mississippi, and cost taxpayers $24 million when it reported Average Wholesale Prices, or AWPs, which grossly exceeded the actual prices Sandoz charged its customers.
Those manipulated prices caused the state to pay more for prescription drugs for Medicaid recipients. As a result of this fraud, the trial court awarded the state compensatory, statutory and punitive damages. The case against Sandoz was among dozens of similar cases brought by the state against other drug companies that also manipulated their reported AWPs so that Mississippi paid too much for prescription drugs for Medicaid recipients.
Our firm represented eight other states in this very same litigation and recovered over $1.5 billion in settlements and jury verdicts for those states. The AWP trial team was lead by Dee Miles with Roman Shaul, Clay Barnett, Ali Hawthorne and Chad Stewart (1972-2014) assisting. All of our lawyers and support staff did tremendous work in this litigation.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.