This was a state A.G. case that charged Sandoz with inflating wholesale prices of prescription drugs.
Here is Jane’s Law Blog’s summary of the case:
The State of Mississippi sued Sandoz over the price of generic drugs manufactured and sold wholesale by Sandoz to Mississippi pharmacies. The State contends that the Mississippi Division of Medicaid was defrauded when it used Sandoz’ published “Average Wholesale Prices” when calculating the amount it reimbursed pharmacies for drugs they dispensed to Medicaid patients. The State argued that the AWP was not merely a suggested or reference price, but instead meant the “average of wholesale prices that a wholesaler received from the sale of Sandoz drugs to pharmacies” and, thus, Sandoz committed fraud because it knew that its AWPs were greater than the prices pharmacies actually paid causing the State to overpay Mississippi pharmacies by $23 million.
The chancellor found against Sandoz and awarded $23,661,618, – the amount MS Medicaid overpaid due to Sandoz’s actions. The court also awarded the State $2,699,000 in civil penalties based on the Consumer Protection Act. The court imposed $3,750,000 in punitive damages for Sandoz’s willful and fraudulent misconduct. The court ruled against the State on whether Sandoz violated Mississippi’s Medicaid Fraud Control Act, and it denied the State’s post-trial motion for attorney’s fees, prejudgment interest, and other relief. The Miss.S.Ct. affirms.
I will post more on this decision next week.