16 Firms Accused of Inflating Prices
Nevada is suing 16 drug makers and biotechnology companies, including GlaxoSmithKline and Amgen Inc., alleging that the companies charged inflated prices for medicines.
State Atty. Gen. Frankie Sue Del Papa, in two civil lawsuits filed in January and March, accused the companies of consumer fraud and racketeering, alleging that the drug makers charged improperly high wholesale prices for their products. The government’s health-care programs use average wholesale prices supplied by the drug makers to help determine reimbursement.
The Montana attorney general’s office and other state and federal authorities also are investigating whether drug makers and other health-care companies have worked with doctors to collect excessive payments from government health insurance programs, including Medicare and Medicaid.
GlaxoSmithKline and Amgen did not immediately return calls for comment.
Sign up for Essential California
The most important California stories and recommendations in your inbox every morning.
You may occasionally receive promotional content from the Los Angeles Times.
