Court Rules Lupron Litigation Will Go Forward Three Drug Companies Charged for Overpricing; Lead Plaintiff, from Spector, Roseman & Kodroff, Available For Comment.Legal Writers PHILADELPHIA--(BUSINESS WIRE)--Dec. 1, 2003 On Nov. 25, 2003 Judge Richard G. Stearns of the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. , District of Massachusetts, sustained plaintiffs' complaint against the manufacturers of Lupron, a drug primarily used for prostate cancer, for improper pricing activities. The suit, which was originally filed by consumer fraud attorney and lead plaintiff counsel Jeffrey L. Kodroff, from Spector, Roseman & Kodroff, P.C., alleges that the "average wholesale price" (AWP AWP Awaiting Parts (military equipment status) AWP Average Wholesale Price AWP Annual Work Plan AWP Associated Writing Programs AWP Amusement with Prizes AWP Any Willing Provider AWP Aerial Work Platform ) for Lupron was deliberately inflated by defendants Tap Pharmaceuticals, Inc., Abbott Laboratories (NYSE NYSE See: New York Stock Exchange : ABT ABT About ABT Abteilung (German: Department) ABT Abbott Laboratories (stock symbol) ABT American Ballet Theatre ABT Associação Brasileira de Telemarketing ABT Abort ABT Availability Based Tariff ) and Takeda Chemical Industries, as part of an illegal marketing and sales scheme to promote Lupron at plaintiffs' expense by funneling hidden profits to doctors. The federal government has already recovered $875 million on behalf of Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. as a result of this scheme. The AWP is the amount upon which Medicare and many others base their reimbursements. The complaint also alleges that the defendants provided free samples of Lupron to medical providers and suggested that they could, and should, bill patients for the free samples. The Lupron case is especially timely in light of the ongoing questions as to the financial viability of both Social Security and Medicare. "With the Federal Government finalizing a prescription drug plan for Medicare, if this type of fraud is left unchecked, the plan is sure to have problems," said Kodroff. Kodroff explained that defendants asked the Court to dismiss the case claiming that everyone knew the AWP was just a sticker price. In denying defendants' request, the Court ruled that "There is a difference between a sticker price and a sucker price." The Court specifically sustained plaintiffs' claims under the Racketeering Traditionally, obtaining or extorting money illegally or carrying on illegal business activities, usually by Organized Crime . A pattern of illegal activity carried out as part of an enterprise that is owned or controlled by those who are engaged in the illegal activity. Influenced and Corrupt Organizations Act (RICO RICO n. . ) and state consumer protection statutes. For more information, contact Jeffrey Kodroff at 215-496-0300. |
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