A Collaboration with the University of Pittsburgh

California sues 39 pharmaceutical companies for inflating drug prices

[JURIST] California's Attorney General Bill Lockyer [official website] said Thursday that the state is suing 39 pharmaceutical companies [press release] for concealing the actual costs of their drugs in an attempt to artificially inflate payments from California's Medicaid program. Lockyer said he added new drug companies [amended complaint] including GlaxoSmithKline and Amgen [corporate websites] to the state's prior complaint which named Abbott Laboratories and Wyeth [corporate websites] as defendants. The companies are alleged to have defrauded California into paying higher reimbursement rates in the Medi-Cal program [official website] for the poor, a practice that Lockyer calls "gouging the public on basic life necessities." Almost a dozen other states have filed similar suits which have been consolidated in a federal court in Boston. Reuters has more.

About Paper Chase

Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

© Copyright JURIST Legal News and Research Services, Inc., 2013.