TortsProf Blog

Editor: Christopher J. Robinette
Southwestern Law School

Wednesday, October 21, 2009

AL: Pharmaceutical Companies Did NOT Cause State to Over-Reimburse

On Friday, the Alabama Supreme Court reversed multi-million dollar trial-court judgments against pharmaceutical companies that had allegedly caused the state to over-reimburse pharmacies and physicians for the medicines they provided to Medicaid patients.  Even though the pharmaceutical companies were not directly reimbursed, it was alleged that they received indirect benefits by boosting their market share.  The court concluded:

The State failed to produce substantial evidence that it reasonably relied on the misrepresentations and/or fraudulent suppression it alleged AstraZeneca, GSK, and Novartis engaged in in these cases.

A copy of the opinion (pdf) is here:  Download GSK Full Opinion[1].  

This is another case in which a state AG used outside counsel to sue an industry for a violation based in tort law.  This decision comes as the National Association of Attorneys General is considering whether to place limits on the ability of a state AG to hire outside counsel in search of funds for the state.

Thanks to Mark Behrens for the tip.


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