Tuesday, February 24, 2009

Medicaid fraud in sweet home Alabama

Jurors ordered the German-based pharmaceutical company Sandoz Inc. on Tuesday to pay Alabama $78.4 million for causing the state Medicaid program to pay too much for prescription drugs from 1991 to 2005.

The jury ordered Sandoz, a subsidiary of Novartis AG, to pay $28.4 million to compensate that Medicaid program for its losses and another $50 million in punitive damages. Jurors took about four hours over two days to return a verdict.

"We had a very strong case and we are satisfied," said attorney Jere Beasley, who represented the state in a trial lasting little more than two weeks.

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