In an effort to curb the skyrocketing costs of prescription drugs in Pennsylvania, Attorney General Jerry Pappert sued 13 major pharmaceutical companies, accusing them of unlawful and deceptive pricing and sales practices in a complex scheme to raise drug prices and capture market share by artificially inflating the cost of their drugs, some of which were used by cancer patients and others with life-threatening illnesses, said Pappert in a prepared statement.
“This scheme cost our citizens and the Commonwealth hundreds of millions of dollars in overcharges for prescription drugs,” Pappert said at a news conference. “I am seeking to return those dollars to consumers and state programs, put a stop to these practices and thereby lower the cost of prescription drugs for all of us.”
Pappert identified the main defendants as: TAP Pharmaceutical Products, Inc.; AstraZeneca; Bayer AG; GlaxoSmithKline, PLC; Pfizer Inc.; Amgen Inc.; Schering-Plough Corporation; Bristol-Myers Squib Company; Johnson & Johnson; Baxter International Inc.; Aventis Pharmaceuticals, Inc.; Boehringer Ingelheim Corporation, and Dey Inc. The lawsuit also lists several subsidiaries and affiliates as defendants. Pappert said he would reserve the right to take action against other companies who participate in similar alleged schemes to defraud consumers.
Pappert said the lawsuit accuses the defendants of four broad actions that constituted their illegal marketing scheme and conspiracy:
* Establishing and promoting “spreads” between what drug companies actually charge for the drugs and what consumers and state programs are billed for the drugs.
** Providing free goods and drug samples knowing that consumers and state government would be charged the full price for the products.
** Providing other financial incentives and inducements, including cash payments and free trips, to promote the sales of their drugs at exorbitant prices.
** Engaging in efforts to fraudulently conceal and suppress the illegal conduct in an effort to maintain the scheme and conspiracy.
(via PR Newswire)
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