Drug Makers To Pay $89 Million To Settle Alabama Medicaid Price Suits

   DOW JONES NEWSWIRES 
 

Pharmaceutical companies agreed to pay an additional $89 million to Alabama in settlement of litigation against 72 companies accused of defrauding the state's Medicaid system by overcharging for drugs.

The state already reached settlements totaling $34.8 million and won jury verdicts of more than $352.4 million against defendants in the case.

The latest settlements resolves suits against drug manufacturers, including Abbott Laboratories (ABT), Aventis Pharma Ltd. (500674.BY), TEVA Pharmaceutical Industries Ltd. (TEVA), Ivax Diagnostics Inc. (IVD), Barr Laboratories Inc., Schering-Plough Corp. (SGP), Forest Laboratories Inc. (FRX) and Baxter International Inc. (BAX).

The litigation was filed in 2005 and alleged massive reporting of false prices to Alabama's Medicaid agency from 2001 to 2005.

Lawsuits are pending against 45 defendants in Alabama. The next trial is scheduled against Watson Pharmaceuticals Inc. (WPI) on June 22. A trial involving Mylan Inc. (MYL) is set for trial Sept. 21.

Twenty-two other states have similar suits pending.

-By Kathy Shwiff, Dow Jones Newswires; 201-938-5975; [e-mail]