Judge Price said this past Monday jurors appeared to be hopelessly deadlocked after more than seven hours of deliberations. He said he expects the case will be tried with a new jury in September.
Attorneys representing the state claimed Watson cheated the state's Medicaid program out of $23 million over about 14 years.
The trial lasted four weeks. Jurors had begun deliberations last week and continued Monday afternoon.
The case is State of Alabama v. Watson Pharmaceuticals Inc., CV2005-219.76, Montgomery County, Alabama Circuit Court (Montgomery).