The settlement comes as a conclusion to the allegations that a scheme by its Warrick Pharmaceuticals Corp. division inflated the corporation’s prices in a way that cost Missouri taxpayers millions of dollars.
The settlement comes at the end of a two-week trial in St. Louis City Circuit Court in which attorneys from Nixon’s office had already established the corporation’s liability in the case and the jury had found that Schering-Plough owed $7.3 million in compensatory damages. The $31 million settlement resolves Missouri’s claims, and brings the total recovered by Nixon from his original lawsuit against Schering-Plough and another defendant drug company, Dey Inc., to almost $34 million.
Nixon filed a lawsuit against Schering-Plough in May 2005, alleging the company did not accurately report the prices of drugs sold to pharmacies participating in the Missouri Medicaid program. The prices reported to pharmaceutical trade publications - referred to as average wholesale price (AWP) or wholesale acquisition cost (WAC) - often were substantially higher than the prices actually paid by the provider for the drugs, which were primarily generic brand inhalants used by patients with respiratory conditions.
Source: Kansas city info zone
Filed under Class Action, Cyber Crime, Lemon Law, Medical Malpractice | Tags: Damages, Liability, Missouri Medicaid program, Settlement, Warrick Pharmaceuticals Corp, wholesale acquisition cost | Comment Below