companies

Drug Companies Ordered to Pay Alabama $114 Million in Medicaid Pricing Fraud Scheme

Monday, December 01, 2008 by: David Gutierrez, staff writer
Tags: pricing fraud, health news, Natural News

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
BACK INTO THE CLOSET: Why U.S. reporters are not allowed to write about rainbow events in nations where being gay is still condemned
Depopulation test run? 75% of children who received vaccines in Mexican town now dead or hospitalized
INVESTIGATION: Three days before Dr. Bradstreet was found dead in a river, U.S. govt. agents raided his research facility to seize a breakthrough cancer treatment called GcMAF
A family destroyed: Six-month-old dies after clinic injects baby with 13 vaccines at once without mother's informed consent
BOMBSHELL: China and America already at war: Tianjin explosion carried out by Pentagon space weapon in retaliation for Yuan currency devaluation... Military helicopters now patrolling Beijing
Companies begin planting microchips under employees' skin
BAM! Chipotle goes 100% non-GMO; flatly rejecting the biotech industry and its toxic food ingredients
ECONOMIC SLAVERY FOR ALL: While we were distracted with the Confederate flag flap, Congress quietly forfeited our entire economic future via fast-track trade authority
McDonald's in global profit free fall as people everywhere increasingly reject chemically-altered toxic fast food
March Against Monsanto explodes globally... World citizens stage massive protests across 38 countries, 428 cities... mainstream media pretends it never happened
SCOTUS same-sex marriage decision may have just legalized the concealed carry of loaded firearms across all 50 states, nullifying gun laws everywhere
Vicious attack on Dr. Oz actually waged by biotech mafia; plot to destroy Oz launched after episode on glyphosate toxicity went viral
Nearly every mass shooting in the last 20 years shares one surprising thing? and it's not guns
Holistic cancer treatment pioneer Dr. Nicholas Gonzalez dies suddenly; patients mourn the loss of a compassionate, innovative doctor who helped thousands heal from cancer
Wild eyes and bowl cuts: Why do mass shooters always share the same hair styles and crazed zombie stares?
Genetically white woman now claims self-identify as black: If you can choose your gender, can you also choose your race? What about your species? Can a human claim to be a llama?
Mind control through emotional domination: How we're all being manipulated by the "crisis of the NOW"
Costco stops selling antibiotic laden chicken in response to consumer demand
Delicious
(NaturalNews) An Alabama court has ordered two major drug companies to pay the state more than $114 million after finding them guilty of Medicaid price fraud.

State lawyers had accused GlaxoSmithKline and Novartis of charging Alabama's Medicaid program a higher price for drugs between 1991 and 2005 than it had charged private insurance companies. In addition to the compensatory damages that it was eventually awarded, the state had asked for nearly $700 million in punitive damages.

After deliberating for seven hours, the jury found both companies guilty of price fraud, but declined to order them to pay punitive damages. GlaxoSmithKline was ordered to pay $80.8 million, while Novartis was ordered to pay $33.7 million.

"I think the jury looked at the evidence and decided the fraud was substantial but that the compensatory damages plus interest was enough," said state attorney Jere Beasley.

In 2005, Alabama filed such price-fixing lawsuits against more than 70 pharmaceutical companies. The first case to go to trial ended with a jury ordering Astra Zeneca Pharmaceuticals to pay the state $215 million, although a judge later reduced that amount to $40 million in compensatory damages and $120 million in punitive damages. The case against GlaxoSmithKline and Novartis was the second to go to trial.

After the verdict, state lawyers sent letters to 69 drug companies, giving them 30 days to settle the lawsuits against them, rather than facing the risk of a trial.

Both GlaxoSmithKline and Novartis continue to deny any wrongdoing, insisting that they followed proper pricing procedures. Both companies have announced their intent to appeal the court's decision.

"It's been our position all along that [GlaxoSmithKline] reported true and accurate prices," said Don Jones, a lawyer for the company.

"We're grateful that the jury did not find the punitive damages were warranted," said Novartis lawyer Harlan Prater. "We believed we reported appropriate prices."

Sources for this story include: ap.google.com.

Follow real-time breaking news headlines on
Pricing fraud at FETCH.news
Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support NaturalNews.com by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite NaturalNews.com with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...

GET SHOW DETAILS
+ a FREE GIFT

Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of NaturalNews.com, the internet's No. 1 natural health news site. (Source: Alexa.com)

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.