Recent Pharmaceutical Cost Reimbursement Litigation

Law360 (February 11, 2008, 12:00 AM EST) -- In the first wave of medical cost reimbursement litigation in the 1990s, third-party payers (TPPs) of medical costs – including states, private insurers, and union health and welfare funds – sued the tobacco companies to recover money they had spent to treat persons injured by smoking.

The tobacco companies settled the states’ suits in 1998 at a cost estimated at more than $250 billion; the companies won dismissal of all the suits brought by private payers.

There is now a second wave of cost reimbursement litigation,...
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