La. Seeks $12B In Avandia Medicaid Fraud Suit

Law360, New York (February 16, 2011, 7:03 PM EST) -- In a suit seeking more than $12 billion in damages, Louisiana claims that its Medicaid program paid fraudulently inflated prices for GlaxoSmithKline PLC's diabetes treatment Avandia because the company concealed the drug's serious health risks.

Louisiana Attorney General James Caldwell filed the suit Tuesday in the the 19th Judicial District Court for the Parish of East Baton Rouge alleging the drugmaker violated the state's Medical Assistance Programs Integrity Law and consumer protection statute.

The suit claims that GlaxoSmithKline "orchestrated a campaign of misinformation" about Avandia by...
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