Barbour: Miss. not really getting $20 million from settlements

JACKSON, Miss. (Legal Newsline) – Mississippi Gov. Haley Barbour has warned a joint legislative budget committee against relying on recent legal settlements with four pharmaceutical companies as a “windfall” for the state budget next year.

On Monday, Mississippi Attorney General Jim Hood announced that two settlements with three pharmaceutical manufacturers were reached in ongoing cases related to average wholesale prices, or AWPs.

Hood said the settlements with Par Pharmacuetical Co., Alpharma USPD Inc., now known as Actavis Mid-Atlantic LLC, and Purepac Pharmaceutical Co., now known as Actavis Elizabeth LLC, would put $6,032,000 in the state’s coffers.

The money comes from recently settled cases in the AWP litigation involving allegations of consumer protection violations and Medicaid fraud. AWPs are the average price at which drugs are purchased at the wholesale level.

Legal News Line
10/26/11