An Alabama jury on Tuesday ordered drug companies GlaxoSmithKline and Novartis to pay a combined $114 million in damages for their involvement in a Medicaid price fixing scheme. Lawyers for the state of Alabama claimed these drug manufacturers charged higher prices to Medicaid than those offered to other companies. In other words, they were trying to rip off the government. (If true, they would not be the first.)
Alabama has been out on the forefront of policing drug companies on this issue. Alabama has accused 70 drug companies with Medicaid drug pricing fraud. In the trial with AstraZeneca Pharmaceuticals in February, a jury awarded $115 million (later reduced to $160 million).
In the public relations battles between drug companies and injury victims, one thing often gets left out: these drug companies are getting called to the mat for their reckless pursuit of profits by more than just drug injury lawyers.