Watson Gets $17.8M Jolt For Medicaid Drug Pricing

Law360, New York (March 24, 2014, 9:42 PM EDT) -- A Mississippi court ordered Watson Pharmaceuticals Inc. to pay $17.8 million in punitive damages to the state last Monday, in Medicaid fraud litigation accusing pharmaceutical companies of using inflated average wholesale prices to milk money from the state’s Medicaid program.

Judge Hollis McGehee awarded the punitive damages to Mississippi, in addition to $12.3 million in compensatory damages already levied against Watson, which is one of 54 drugmakers being targeted in the combined average-wholesale-price inflation lawsuit.

Watson had reported to the state higher prices for its drugs...
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