Thursday, July 3, 2008

Jury rules for Alabama, awards $114M against 2 drug firms in Medicaid price fraud case

By BOB JOHNSON , Associated Press A state court jury on Tuesday found two major pharmaceutical companies defrauded Alabama in a long-running Medicaid drug pricing scheme and ordered the firms to pay more than $114 million in damages. The jury found that GlaxoSmithKline should pay the state $80.8 million in compensatory damages and that Novartis should pay about $33.7 million in similar damages. But it declined to order any punitive damages.

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