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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

GlaxoSmithKline

Medicaid Drug Pricing Misrepresentation (Alabama)

Date: 07/01/2008 (Date of Verdict)

Misconduct Type: Antitrust

Enforcement Agency: State/Local

Contracting Party: None

Court Type: Civil

Amount: $80,989,539

Disposition: Judgment Against Defendant

Synopsis: An Alabama state court jury found GlaxoSmithKline and Novartis liable for misrepresentation by overcharging the state Medicaid program for medications and ordered both companies to pay damages: GlaxoSmithKline was ordered to pay the state $80.9 million and Novartis was ordered to pay about $33.2 million in compensatory damages. The jury did not impose punitive damages. State attorneys claimed the companies charged Medicaid one price for drugs while offering discounts and special prices to other companies from 1991 to 2005. The state filed several lawsuits in 2005 accusing more than 70 drug companies of Medicaid drug pricing fraud. --- In October 2009, the Alabama Supreme Court threw out the jury verdicts, ruling GSK and Novartis did not defruad the state.