Alabama settles $7M drug lawsuits

The state of Alabama will receive almost $7 million from a settlement with two drug manufacturers, who were defendants in a lawsuit the state filed against more than 70 pharmaceutical manufacturers.

The lawsuit, filed by Attorney General Troy King in 2005, alleges the drug companies fraudulently inflated their reported prices for prescription drugs, which caused the Alabama Medicaid Agency to overpay pharmacists and doctors.

King said Wednesday the state has settled the lawsuit against Takeda Pharmaceuticals North America Inc. and against Dey, LP. Under the agreement, Dey will pay the state $4.75 million and Takeda will pay $2 million.

King said the money from the settlement would go into the state’s General Fund budget. The General Fund provides money for most non-education state services, including Medicaid.

The state’s claims against Takeda involved the diabetes drug Actos. Its claim against Dey involved a number of drugs prescribed primarily for pulmonary diseases and asthma, such as albuterol sulfate and ipratropium bromide.

“These settlements are a significant step towards protecting Alabama’s poorest citizens and the scarce resources they depend on to provide for prescription drugs,” King said.

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