Drug companies being sued for inflating prices

Another lawsuit has been filed by Texas Attorney General Greg Abbott on behalf of the State of Texas against several generic drug manufacturers.

The manufacturers, Watson/Schein Pharmaceuticals Inc. of California, Alpharma Inc. of New Jersey, Par Pharmaceutical Inc. of New Jersey, and Barr Phamraceuticals Inc. of New York, are being charged with reporting false, inflated drug prices to the Texas Medicaid program.

This is not the first time companies have been charged with falsifying prices; in the past, the Texas Attorney General has successfully won cases against these companies resulting in multi-million dollar settlements.

Some past Texas Attorney General victories against corporate cheaters include:
• Schering-Plough/Warrick Pharmaceuticals in May 2004 ($27 million)
• Dey Inc. in June 2003 ($18.5 million)
• Boehringer Ingelheim/Roxane Laboratories in November 2005 ($10 million)
Baxter Healthcare Corp. in June 2006 ($8.5 million)

A lawsuits against B. Braun Medical Inc. of Pennsylvania and Abbott Laboratories Inc. of Illinois are still pending.

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