Friday, June 26, 2009

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.

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.