Tuesday, July 01, 2008

Verdict in AWP Case in Alabama: $100 Million +

Tom Methvin's law firm in Montgomery rendered a verdict for the State of Alabama yesterday.

Pharmaceutical companies charged for drugs based on the Average Wholesale Price (AWP). Average Wholesale Price” or AWP has long been used as a pricing benchmark for almost all prescription drug sales in the United States. Health plans, Medicaid and other government programs, and employers determine how much to pay pharmacies and doctors to reimburse them for drugs that are dispensed to patients by using formulas based on the AWP for individual drugs. Source.

A jury in Montgomery County Circuit Court returned a verdict in favor of the State of Alabama in a case involving AWP and allegations of fraud, finding defendants GlaxoSmithKline and Novartis Pharmaceuticals Corp. liable for a total of $114,247,233, of which $80,989,539 is from GlaxoSmithKline and $33,257,694 is from Novartis.

For more on Tom's Firm's victory for the State of Alabama, go here.