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Drug firms settle lawsuit alleging inflated prices

November 17, 2009

Iowa has successfully forced recovery of $4.3 million that pharmaceutical companies have overcharged taxpayers for medications, the attorney general said Friday.

The state will pocket about $1.2 million after lawyer fees and the split to the federal government.

Eight of 78 companies the state sued in federal court two years ago are paying to settle allegations that they intentionally scammed the Iowa Medicaid program by charging inflated drug prices.

 

The recovery is Iowa’s first major victory in the case, Attorney General Tom Miller said.

The drug companies that settled are among the smallest of the ones sued by Iowa, and all deny wrongdoing. And so far, the lawsuit hasn’t prevented drug companies from inflating prices, “a grotesque abuse” that has cost Iowa taxpayers millions of dollars in overcharges, Miller has said.

 

Read Article: DesMoines Register

 

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