Alabama Drug Pricing Lawsuit in Court

On Tuesday, attorneys for the State of Alabama and Watson Pharmaceuticals of California, gave opening arguments in the case, which alleges overcharges to the state's Medicaid system. In 2005, Alabama Attorney General Troy King filed a complaint against 79 pharmaceutical companies which the State alleges misreporting and inflated prices for the drugs.

Watson attorney James Matthews contends the company saved Alabama millions of dollars by providing less expensive generic drugs.

Jere Beasley, founding shareholder of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., is representing the State of Alabama just as he did against AstraZeneca PLC unit, in a similar case claiming Medicaid drug-price fraud suit and won the state $215,000,000.
(http://www.beasleyallen.com/verdicts/$215,000,000-Verdict-in-a-Medicaid-Fraud-Case/).


King recently reached $89 million in settlements and has also secured verdicts in the amount of more than $352 million, but those are under appeal to the state Supreme Court and the State has not received any funds.


I will be watching to advise of future developments.

Homeopathic Remedies & Dietary Supplements Pose Health Risks

Neither supplements nor homeopathic products are required by the FDA to prove they are safe or effective before going on the market. Reports of these products being contaminated or mislabeled provide substantial ammunition against their use.

The Huffington Post reported that "one quarter of supplements tested by an independent company, ConsumerLab.com, over the last decade have had some sort of problem. Some contained contaminants. Others had contents that did not match label claims. Some had ingredients that exceeded safe limits. Some contained real drugs masquerading as natural supplements."

The article explains that millions of Americans take vitamin, herbal or other dietary supplements. Annual sales for these products exceed $23 billion, and more than 40,000 of these products are on the market.

A 2002 New England Journal of Medicine reported, tens of thousands of supplement-related health problems are handled by U.S. poison control centers each year .

Until 2008, supplement makers were NOT required to report problems to the FDA, and now they must report ONLY serious ones. The FDA estimates that more than 50,000 safety problems a year are related to supplement use.

The Institute of Medicine, an independent science panel that advises the government, studied the situation in 2005 and which urges amending the 1994 law to tighten consumer protections. In their report they said "The committee is concerned about the quality of dietary supplements in the United States. Product reliability is low."

The Associated Press analyzed the Food and Drug Administration's 2008 side effect reports and found that more than 800 homeopathic ingredients were potentially implicated in health problems last year.

Given the recent recalls of pharmaceuticals and dietary supplemtns, consumers must evaluate and purchase these with extreme caution.

As we saw last week, Matrixx pulled 3 Zicam products off the shelves which are sold over the counter and marketed as safe and effective after reports of people losing their sense of smell after its use.

Read full Huffington Post article:
http://www.huffingtonpost.com/2009/06/10/many-natural-supplements-_n_213670.html

Source: http://www.sltrib.com/business/ci_12612995

Mesothelioma

Yesterday, I met with a client of mine. He is in his 80's and was diagnosed two months ago with mesothelioma. He starts chemotherapy next week.

He reminded me much of my grandfather, whom I was very close. He was a child of the depression and World War II. He smiled and laughed as he described, in perfect detail, many aspects of his life that even his children had not known. His wife of 63 years nodded and smiled as he spoke of their life together and her "country cooking". It made me yearn for the conversations that I had with my grandfather, who was of the same generation, grew up working in the mines, and believed in working hard, playing by the rules, reading his bible, and giving something back, especially to those in need or without.

I worry about his condition in 6 months and whether he will be alive a year from now.

We have all heard of Mesothelioma. We see ads on television day and night. We know the stories about the industry having knowledge of the dangers of asbestos going back to the turn of the century, but some basic information bears repeating.

Background

Mesothelioma is a rare form of cancer in which malignant (cancerous) cells are found in the mesothelium, a protective sac that covers most of the body's internal organs. Most people who develop malignant mesothelioma have worked on jobs where they were exposed to and inhaled asbestos particles.

Mesothlium cells are found in the sac lining of the chest (pleura), the abdomen (peritoneum), or the heart (pericardium). The specific type of mesothelioma is named for the tissue where the cancer originates.

Approximately 70% of mesothlioma cases starts in the chest (pleural mesothelioma), which surrounds the outer lining of the lungs and internal chest wall.

Symptoms of the illness typically take 20 to 50 years to appear. While there is no cure, treatments involve a combination of surgery, chemotherapy and radiation.

Although reported incidence rates have increased in the past 20 years, mesothelioma is still a relatively rare cancer. About 2,000 new cases of mesothelioma are diagnosed in the United States each year.

Mesothelioma occurs more often in men than in women and risk increases with age, but this disease can appear in either men or women at any age.

The Center for Disease Control noted from a 2003 study that “because mesothelioma manifests 20--40 years after first exposure, the number of mesothelioma deaths will likely peak by 2010.”

If you or a loved one has been diagnosed with mesothelioma, please give me a call to discuss your case. 205-322-8880 or email me @ Chrish@PDKHLaw.com.

PDKH lawyers Jeff Kirby & Chris Cochran obtain 6 Million Dollar Verdict in FELA/train wreck case

On April 19, 2009, PDKH attorneys Jeff Kirby, and J. Chris Cochran obtained a $6,000,000 verdict in Clarke County, Alabama, for a former Norfolk Southern conductor who was severely injured Feb. 14, 2005, at the Walker Springs crossing. The accident involved a log truck and a Norfolk-Southern Railway train.

The Clarke County Democrat reported the $10,948,250 cumulative award may be the largest cumulative civil judgment in Clarke County's judicial history and the complicated trial, which lasted 13 days from March 30 until April 17, is also likely the longest in the county's history.

Plaintiff attorneys alleged two major issues in the case: 1. The railroad's habit of parking rail cars on a siding south of the crossing could obscure the view of an oncoming train and did hide the train that hit the log driver truck. 2. The fact that the crossbuck sign, the traditional "X" that indicates a railroad crossing, was only 12 feet from the track when railroad regulations say it should be 24 feet.

Railroad employees maintained in sworn affidavits prior the trial that the sign was at the proper distance. However, at trial they admitted otherwise. While the trial was in progress, the crossbuck sign was moved to its proper 24 foot distance.

For more information, contact Pittman Dutton Kirby & Hellums lawyers at 205.322.8880.

The Clarke County Democrat published an article about the case on April 23, 2009;
click here : http://www.clarkecountydemocrat.com/news/2009/0423/front_page/001.html

Alabama Supreme Court Stikes Down $5 Million Obstretics Medical Malpractice Award

I read yesterday the Alabama Supreme Court has overturned a multimillion-dollar jury verdict to a woman whose child died shortly after birth in 2005. The Alabama Supreme Court sided with Mobile OB-GYN in a malpractice lawsuit filed by Wendy Godwin Baggett over the death of her newborn son. The court ruled that evidence didn't support the amount awarded and ordered another trial.

The Mobile jury ordered the obstetrics group to pay Baggett $8 million, but that amount was reduced to $5 million before the case reached the Supreme Court. Baggett claimed that negligence by a doctor led to the death of her son less than two days after his birth.

When the opinion comes out, I'll know more information about it.

Federal judge sentences former Alabama Insurance Executive, John Goff, to 12 years prison for mail fraud and embezzlement

United States District Judge Myron Thompson imposed a 12 year sentence on John Goff and ordered him to pay $5 million in restitution to XL America insurance company, of Wilmington, Delaware.

Goff was once a major supplier of worker compensation insurance in southern states of Alabama, Tennessee, North Carolina, Georgia, and Mississippi.

In February, a federal court jury convicted Goff of counts including mail fraud, embezzlement and filing a false report with the Alabama Department of Insurance regarding his business dealings.

Goff was convicted of taking money from clients that included churches and businesses and using it to fund a lavish lifestyle rather than sending proceeds to insurance companies. WFSA reports that, "at one time, Goff had an annual salary of more than $1 million, flew in a private jet and slept in a million dollar home, but now he says he cannot afford the restitution he must repay."

“They’re asking at least $200 a month,” Goff told the television station outside of federal court. “Well, I don’t know. Maybe I need to go and play the Florida lottery. That’s the only way I can do it. I can’t pay it.”

Goff is likely to appeal his conviction, as the judge that sentenced him, Myron Thompson, said he thought several of the convictions might be reversible, according to the report.

Chris Hellums can be contacted at ChrisH@PDKHLaw.com

Read the full WSFA.com article about the John Goff conviction here:
http://www.wsfa.com/Global/story.asp?S=10466762&nav=menu33_5_1

http://www.wsfa.com/Global/story.asp?S=10466762&nav=menu33_5_1

Florida Department of Insurance Issues Show Cause Order Against Liberty National Life Insurance Company

On June 3rd, the Florida Department of Insurance issued an order for Liberty National Life Insurance Company to show cause why a final order suspending or revoking the Certificate of Authority currently held by Liberty National in the state of Florida should not be issued.

The Order arose out of a Market Conduct Examination which took place from June to November of 2008 at Liberty National offices in Birmingham, Alabama.

According to the Order, Liberty National was accused of unfair and deceptive conduct. Specifically, Liberty National is accused of discriminating against people solely because of the individuals national origin.

The order primarily involves individuals from Haiti who applied for insurance, but also addressed applications from individuals from Columbia, India, and Pakistan. The applications reviewed by investigators requested to know if the individual had lived in the United States for the last year. However, Liberty National had an underwriting policy that applicants born in certain countries would be rejected if they had resided in the United States for less than 10 years. This heightened underwriting standard applied to individuals from less developed countries. "This was in direct contrast to the written information provided to applicants as part of the application process that they must have resided in the U.S. for the past year to be eligible for life insurance coverage."


As a result, applicants were denied coverage based solely on their national origin.

Additionally, regulators determined that Liberty National represented a basis for denial as "information not received" which was a completely false and fabricated reason to cancel a policy when no actual reason existed. One underwriting file even contained a handwritten stating "Find a reason to cancel/decline. Info not received?"

For a complete copy of the report, contact Chris Hellums at Chrish@PDKHLaw.com

PDKH announces Hydroxycut Recall Information Website: HydroxyLawyer.com

Pittman Dutton Kirby & Hellums, P.C. announces its consumer Hydroxycut Recall Information website: hydroxylawyer.com. HydroxyLawyer.com . This website will provide consumers with up-to-date information regarding the Hydroxycut Recall Litigation.

Pittman Dutton Kirby & Hellums, P.C. has an worked extensively on products liability and personal injury actions against dietary supplement and pharmaceutical companies.

Pittman Dutton Kirby & Hellums, P.C. managing shareholder Chris Hellums recently was appointed co-lead counsel of the Executive Committee to the Personal Injury Plaintiff's Steering Committee for the Total Body Multi-District Litigation.

Chris Hellums can be reached at ChrisH@PDKHLaw.com

Are Debt Collectors out of Control?

It all started with a call from a potential client. When the call started, I could tell it was going to be a long conversation. The call was from an elderly woman who sounded as if she was at her wits end. As she told her story, I realized that I had to see if I could help.

Her daughter had gotten into drugs and stolen her identity. She had taken out credit cards and incurred debt in her mother’s name. When her mother found out, she talked with her daughter and told her that there must be consequences for her actions. She contacted the police and filed a complaint against her daughter. This was a difficult decision as she loved her daughter and realized that her actions would effect her daughter’s life. However, she was even more concerned if she did nothing to get her daughter's life turned around. Ultimately, her daughter plead guilty and entered into a restitution agreement.

Image via Wikipedia

Shortly thereafter, the mother and true victim began getting calls and letters from debt collectors. She explained the situation to them. She provided them a copy of the complaint she filed. She provided them with a copy of the guilty plea. She even obtained a letter from the District Attorney who prosecuted her daughter describing what happened and stating that she was not now, or had she ever been, a participant in the fraud and in fact, was a victim.

These collectors did not care. Day and night they called. They called at home. They called at work. They even called at her husband’s work. They threatened to garnish her wages. They threatened to take her house. They threatened just about everything you could threaten.

She then went to an attorney. She paid him thousands of dollars to write letters to these people in hopes that would stop the harassment. Nothing seemed to work.

Somehow she found me late one afternoon. Up until this point in time, I had never handled a case like this one. I researched the issues and began looking at consumer sites such as budhibbs.com.

Ultimately, I determined that nothing short of a lawsuit would stop this abuse. I filed suit against the various creditors and debt collectors. Immediately, creditors began to remove negatively reported information.

I then began to receive the first of what has become common in these types of cases. The attorneys for the various creditors and debt collectors call and say they cannot find my client’s account, their client has no record of any calls to my client. They would never call at work. My client must be mistaken. Fortunately, my client had kept recordings from her answering machine and had co-workers listen in on conversations. Ultimately, we settled with the debt companies and collectors. My client received economic compensation and on some level, felt vindicated.

Since that time, I have represented a number of client’s in these types of transactions.

I advise them all to do the following:

1. Document every conversation
2. Document any phone number which calls them
3. Retain all letters received from any bill collectors
4. Dispute all accounts with the various Credit Reporting Agencies
5. Obtain a police report
6. Send a letter, certified mail, to each creditor and debt collection company

I also tell my clients to be prepared to receive more harassing calls and letters stating that the creditor or debt collectors have completed their investigation and determined that they owe the debt.

To understand why this occurs, consumers need to know more about how the industry works. Stay tuned to future postings about how the industry operates, the tactics they use, and where to go for help.

Chris Hellums is the managing shareholder of Pittman Dutton Kirby & Hellums. He can be reached at CHRISH@PDKHLaw.com or toll free at 866-515-8880

Congress Must Act on Nutritional and Dietary Supplements

We must tighten laws on nutritional and dietary supplements. It is that simple. All day and all night we are barraged with commercials touting (and showing) the benefits of these products. And yes, from time to time, there are articles or exposés which reveal that the women in the ads have lost the weight not from taking the product, but either by gaining the weight on purpose, or comparing against pictures taken shortly after having a baby.

However, this is not enough to deter Americans quest for a bottle cure, and while spending some money on a product that simply does not work is acceptable to many, what most don’t realize are the real dangers of these types of products. Many assume that manufactures cannot make the exaggerated claims on television unless they are true, or because the Food and Drug Administration regulates prescription drugs so heavily, that they regulate these as well. These assumptions are simply incorrect. The truth of the matter is that the exaggerated claims are made because there is so little regulation and because there is so much money to be made---$22 Billion-a-year. Yes, that is correct, Billion, not Million.

A 1994 law leaves this industry lightly regulated. Supplement manufacturers don't have to provide scientific proof of a product's purity, safety or effectiveness before they put it on the market. Instead, the FDA generally does not step in until after problems are reported.

The industry argues that the current regulation works well and that one bad apple is not representative of an industry whose manufactures, for the most part, go to great lengths to ensure they sell a safe, quality product. The problem is that the Hydroxycut has become just another addition to a long list of dietary and nutritional supplements that were heavily hyped and then discovered after perhaps millions were sold, to pose significant and harmful risks. Last year, Total Body Formula, was recalled after it was determined that it contained toxic amounts of Selenium---the same substance that killed polo horses in Florida. If selenium will kill horses, imagine what it would do to humans. StarCaps, a product used by overweight Minnesota Vikings Kevin and Pat Williams, was found late last year to contain an unlisted prescription diuretic that could increase users' risk of heat stroke and dehydration. In 2004, the FDA banned ephedrine diet aids after a major study linked the products' use to more than 16,000 adverse events, including cardiovascular problems.

Incredibly, Hydroxycut was marketed as a better alternative after the ephedrine ban. It’s name comes from hydroxycitric acid, which comes from a tropical fruit. Reportedly, Hydroxycut sold 9 million units last year. After 23 reported cases of serious health problems in people taking the product, including liver abnormalities, heart problems and possible kidney failure -- Hydroxycut's manufacturer agreed to recall at least 14 products late last week.

The time has long come for Congress to more strongly regulate dietary and nutritional supplements. Of course, once this occurs, we will only have to worry about altered data being sent to the F.D.A. and a revolving door of regulators moving on to work for the industry.

Chris Hellums is the managing partner of Pittman Dutton Kirby & Hellums and is currently co-lead counsel of the Executive Committee to the Personal Injury Plaintiff's Steering Committee for the Total Body Multi-District Litigation. He can be reached at ChrisH@PDKHLaw.com