Judge Upholds AstraZeneca Medicaid Fraud
Make a commentBy Ed Silverman // June 19th, 2008 // 12:49 pm
An Alabama state judge upheld the verdict in which a jury found the drugmaker overcharged the state Medicaid program, the Associated Press reports. However, Circuit Judge Charles Price also ruled that punitive damages were too high and trimmed the total judgement to $160 million.
The jury had ordered the company to pay $40 million in compensatory damages and $175 million in punitive damages. But Price ruled that state law limits punitive damages to three times compensatory damages, cutting the amount down to $120 million.
The verdict in February came in the first trial of lawsuits filed against more than 70 drugmakers by the state, which claims it was overcharged for prescription drugs for Medicaid recipients. AstraZeneca previously said it would appeal the ruling. Two other drugmakers, Novartis and Glaxo, are currently on trial in the litigation in Montgomery.