Pharma 101 - Pharmaceutical Fraud » Bristol-Myers Squibb

Big Pharma Pays $13.6 million for Price Inflation

Nolan and Auerbach — Tue, 25 Mar 2008 21:13:49 +0000

U.S. District Court Judge Patti Saris has ordered drug companies AstraZeneca and Bristol-Myers Squib to pay a total of $13.6 million in a Masachusetts case that alleged that they inflated the average wholesale price (AWP) of expensive and in some cases, life-saving drugs. Judge Saris also found that the companies “unfairly and deceptively caused to be published false” average wholesale prices of drugs and thus caused “real injuries to the insurers and the patients who were paying grossly inflated prices for critically important, often life-sustaining drugs.” Judge Saris said that she decided to double the assessed damages because the conduct was willful on the part of the companies. Judge Saris further stated that “The Defendants well understood the devastating impact the mega-spreads had on old and sick patients required to make co-payments they could ill afford.”

Bristol-Myers is maintaining that their pricing was fair and that they intend to appeal this decision.

Of note is the fact that Judge Saris remarked and doubled the damages due to the wilfulness on the part of the defendants. Further, this can expand to a nationwide class action lawsuit.

To read more click on:

http://www.boston.com/news/local/massachusetts/articles/2007/11/02/drugs_companies_ordered_to_pay_136_million_for_inflating_prices/ or to read more about pharmaceutical fraud go to www.whistleblowerfirm.com/pharmaceuticalfraud

Federal Judge Rules Drug Companies Engaged in Drug Price Deception

Nolan and Auerbach — Mon, 25 Jun 2007 14:32:27 +0000

In a class action lawsuit that claims drug companies unfairly adjusted prices of medication, the plaintiffs scored a major victory when Judge Saris found that defendants “unfairly and deceptively caused false AWPs to be published knowing that payers and the government did not understand the truth and the severity of the markups.” The named defendants are AstraZeneca, Schering-Plough and Bristol-Myers Squib.

In her opinion dated June 21, 2007, Judge Saris wrote that “Unscrupulously taking advantage of the flawed AWP system … by establishing secret mega-spreads far beyond the standard industry markup was unethical and oppressive.” She also wrote that such practices, “caused real injuries to the insurers and patients” who paid inflated prices for life-sustaining drugs. Such drug pricing fraud is part of a broad category of pharmaceutical fraud.

AWP is Average Wholesale Price, the measure by which drugs were generally paid for by healthcare payors in years past. Medicare now pays for drugs on an Average Sales Price basis, which is an actual price and less likely to be manipulated.

To read more of the story look here.

499 Million Bristol-Myers Squibb Agreement to Settle Fraud Charges

Nolan and Auerbach — Wed, 27 Dec 2006 16:02:14 +0000

The United States Department of Justice has reached a tentative settlement with Bristol-Myers Squibb in the amount of $499 million to settle several investigations involving the Company’s sales and marketing as well as drug pricing activities.

To read more click here.