Drug giant will face Mass. suit

March 30, 2009

A U.S. District Court judge has ruled that the country’s biggest maker of generic drugs must face a lawsuit brought by Massachusetts over prices the company charged the state’s Medicaid program for anxiety medications, according to Bloomberg.Judge Patti Saris ruled that the state’s suit, which claims Pennsylvania-based Mylan Inc. fraudulently inflated prices for generic prescription drugs, isn’t barred by the company’s 2002 antitrust settlement with Massachusetts and other states.
Mylan and three other drugmakers agreed to pay $100 million to settle a suit by the Federal Trade Commission and 33 states over allegations they conspired to deny competitors key ingredients for lorazepam, the generic version of Ativan, and clorazepate, the generic for Tranxene. That agreement won final approval in 2002, Bloomberg reported.
Lawyers for Mylan claimed the settlement barred Massachusetts from bringing suit over the prices the company charged the state for those drugs, as well as phenytoin sodium, used to treat seizures.

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