Ala. High Court Reverses $275M AWP Decisions

Law360, New York (October 16, 2009, 6:07 PM EDT) -- The Alabama Supreme Court has overturned two jury decisions awarding the state nearly $275 million from three pharmaceutical companies, which the state accused of ripping off its Medicaid program by fraudulently inflating the price of their prescription drugs.

In an 8-1 opinion the court ruled in favor of appellants AstraZeneca LP, Novartis Pharmaceuticals Corp and GlaxoSmithKline, finding that as a matter of law the state cannot claim that it was misled by the drugmakers' pricing policies because for at least 30 years it knew that the...
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