Justices toss $78M verdict for state over Medicaid
MONTGOMERY, Ala. (AP) — The Alabama Supreme Court has overturned a $78.4 million verdict for the state in its lawsuit against German drug manufacturer Sandoz Inc.
The state won the verdict in 2009 claiming the company made the Alabama Medicaid Agency pay too much for prescription medication over a 14-year period ending in 2005.
The justices threw out the judgment in an unsigned opinion Friday, ruling that the state based Medicaid reimbursement payments on policy concerns and regulations, not actions by Sandoz.
The court previously overturned similar verdicts totaling $274 million against three other drug makers
The state filed more than 70 lawsuits against drug makers in 2005 about pricing. Some makers agreed to settlements, but others fought back.
Sandoz argued that it actually saved the state millions by providing less-expensive generic drugs.