Ala. claims another victory over drug companies

Posted by: Matt Stanley - bio | email

Montgomery, Ala. (WSFA) -- The state claims another victory against drug companies accused of over-charging the Alabama Medicaid agency.

The Attorney General's office calls it justice to the tune of half a billion dollars. Money is beginning to trickle back down the pipe after Attorney General Troy King filed a massive lawsuit in January 2005 on behalf of the state medicaid agency.

The litigation accuses more than 70 drug companies of falsely inflating the price of its medicine naming the case the "average wholesale price" litigation.

"The defendants manipulated the prices of prescription drugs sold to Medicaid recipients," said Attorney General Troy King.

The latest settlement to date is $89 million collected from 6 drug manufacturers.

King says the lawsuits initially generated criticism, but now the money can be used to help the alleviate strapped state budgets.

King hopes the recovered money will be used to help offset budget shortfalls in the Department of Corrections or to help save Alabama's prepaid tuition program.

The state still has 45 trials scheduled, the next case starts in June.

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