WSFA 12 News Montgomery, AL |State Settles with Two Pharmaceutical Companies

State Settles with Two Pharmaceutical Companies

AG ANNOUNCES $6.75 MILLION SETTLEMENT WITH TWO DRUG COMPANIES

(MONTGOMERY)- Attorney General Troy King announced today that the State of Alabama has settled its claims against pharmaceutical manufacturers Dey, LP and Takeda Pharmaceuticals North America, Inc. regarding the State's lawsuit alleging that certain pharmaceutical companies fraudulently inflated their reported prices for prescription drugs causing the Alabama Medicaid Agency to overpay pharmacists and doctors for the drugs.  Under the settlement, Dey will pay the State $4.75 million and Takeda will pay $2 million.  The State's claims against Takeda involved the diabetes drug Actos, and its claim against Dey involved a number of drugs prescribed primarily for pulmonary diseases and asthma, such as Albuterol Sulfate and Ipratropium Bromide.

Attorney General King's lawsuit continues against 71 other defendants for fraud regarding the pricing of prescription drugs.  He filed the lawsuit in 2005 in Montgomery County Circuit Court alleging massive overcharges to the Alabama Medicaid Agency over a period of many years as a result of the pharmaceutical companies misreporting and inflating their prices for these drugs.

"These settlements are a significant step towards protecting Alabama's poorest citizens and the scarce resources they depend on to provide for prescription drugs," said Attorney General King.  "The fraudulent practices of Takeda and Dey limited access to life-saving medicines for those who are in most need of our help and protection.  The settlements we announce today send a message that we will not tolerate those who take advantage of our seniors, our poor, and our children; that we will fight for the people of Alabama; and that those who defraud our state agencies will be held to account.  Alabamians can also rest assured that we will do our duty to protect our poorest and neediest citizens."

The State of Alabama's complaint against four of the remaining defendants, AstraZeneca Pharmaceuticals LP, AstraZeneca LP, Novartis Pharmaceuticals Corporation, and SmithKline Beecham Corporation d/b/a GlaxoSmithKline, is scheduled to go to trial in February in Montgomery County Circuit Court.  The trials against the other defendants will be scheduled later.