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Iowa Takes On Drug Industry In New AWP Suit

Law360 (October 9, 2007, 12:00 AM EDT) -- Iowa has become the latest state to sue the major pharmaceutical companies for fraud, alleging that drug makers fleeced millions of dollars from taxpayers by inflating average wholesale prices used to calculate government rebates.

Following in the footsteps of more than two dozen other states, including Nevada, Montana and Texas, Iowa Attorney General Tom Miller filed action Tuesday against 78 drug companies to recover the money he says was lost through a “grotesque abuse of the Medicaid reimbursement system.”

Accusing the companies — which include AstraZeneca...
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