State Sues Pharmaceutical Firms for Medicaid Fraud

Florida Attorney General Charlie Crist has sued three pharmaceutical companies for $25 million, charging them with illegally inflating prices on generic drugs used to treat depression, schizophrenia, seizures and angina. The lawsuit against Sandoz Inc., Ivax Pharmaceuticals Inc. and Purepac Pharmaceutical Co., along with various parent and subsidiary companies, alleges that since 1994 they have overstated the prices of generic drugs in statements to the Medicaid program. The False Claims Act authorizes triple damages, increasing the state's potential recovery to $75 million.

Orlando Business Journal (http://www.bizjournals.com/orlando/stories/2005/04/04/daily30.html)