SmithKline Beecham Corp. v. Alabama; Novartis Pharmaceuticals Corp. v. Alabama
- Case Date: 12/15/2008
- Project Name: Health Care Project
On October 16, 2009, the Alabama Supreme Court overturned massive judgments entered against three major drug companies. The multi-million dollar judgments in favor of the State of Alabama were based on unsupported allegations that the companies misreported the “wholesale acquisition cost” (WAC) and “average wholesale price” (AWP) for their products. The court’s action was a victory for WLF, which filed a brief urging that the judgments be overturned. WLF argued that Alabama failed to introduce evidence that the defendants did anything that could constitute fraud. WLF filed its brief on behalf of itself and the Alabama Civil Justice Reform Committee. The Alabama court agreed with WLF that the State had failed to demonstrate that it relied on any allegedly misleading information. The Court noted that Alabama officials had been told repeatedly what the terms WAC and AWP meant and that those terms did not represent actual prices paid for drugs, either by wholesalers or by pharmacists.
More Information and Downloads:
12/15/2008: Download the Brief
Litigation Update: Alabama Court Overturns Judgments Based On Alleged Misreporting Of AWP