Monroe County, N.Y., Sues Drug Companies for Inflating Average Wholesale Price, Not Paying Enough Rebates

Main Category: Pharma Industry / Biotech Industry
Article Date: 08 Apr 2005 - 6:00 PDT


Monroe County, NY, on Friday filed a lawsuit against 77 pharmaceutical companies, claiming that they fraudulently inflated the average wholesale price of prescription drugs during the last 10 years, the... Rochester Democrat and Chronicle reports. The lawsuit, filed in U.S. District Court in Rochester, also alleges that drug companies failed to pay sufficient rebates to the county as required under federal law. The lawsuit does not specify how much the increased prices cost the county, according to the Democrat and Chronicle. If the county wins the case, a judge would determine the damages. Larry Staub, a spokesperson for the county, said the county's Medicaid prescription drug spending increased to $27.7 million in 2003 from $6.5 million in 1995. The New York City-based law firm Kirby McInerney & Squire is expected to represent Monroe County in the lawsuit. The firm also is handling similar cases in New York City and six other New York counties (Goodman, Rochester Democrat and Chronicle, 4/4).

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