DOW JONES NEWSWIRES
Pharmaceutical companies agreed to pay an additional $89 million
to Alabama in settlement of litigation against 72 companies accused
of defrauding the state's Medicaid system by overcharging for
drugs.
The state already reached settlements totaling $34.8 million and
won jury verdicts of more than $352.4 million against defendants in
the case.
The latest settlements resolves suits against drug
manufacturers, including Abbott Laboratories (ABT), Aventis Pharma
Ltd. (500674.BY), TEVA Pharmaceutical Industries Ltd. (TEVA), Ivax
Diagnostics Inc. (IVD), Barr Laboratories Inc., Schering-Plough
Corp. (SGP), Forest Laboratories Inc. (FRX) and Baxter
International Inc. (BAX).
The litigation was filed in 2005 and alleged massive reporting
of false prices to Alabama's Medicaid agency from 2001 to 2005.
Lawsuits are pending against 45 defendants in Alabama. The next
trial is scheduled against Watson Pharmaceuticals Inc. (WPI) on
June 22. A trial involving Mylan Inc. (MYL) is set for trial Sept.
21.
Twenty-two other states have similar suits pending.
-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975;
Kathy.Shwiff@dowjones.com
