HAGENS BERMAN

Date Filed: January 16, 2002
Court: U.S. District Court
Location: Nevada

Acting as special assistant attorney general, Hagens Berman founding partner Steve Berman filed a suit on behalf of the state of Nevada, challenging drug companies' practice of charging for Medicare drugs based on Average Wholesale Price ("AWP").

This case is brought as a representative action on behalf of thousands of patients and third party payors, and on behalf of the State of Nevada to obtain equitable and injunctive relief.

Filed against several pharmaceutical manufacturers, including: Abbott Laboratories, Inc.; Baxter Pharmaceutical Products, Inc.; Bayer Corp.; Bristol-Myers Squibb Company; Dey, Inc.; Glaxosmithkline Corp.; Glaxo Wellcome, inc.; Pharmacia Corp.; Pharmacia & Upjohn Company; Smith Kline Beecham Corp.; Tap Holdings, Inc.; Warrick Pharmaceuticals Corp. and Does 1 through 100.

The complaint alleged that, in many instances, the purported AWP reported by the defendant pharmaceutical manufacturers bore a minimal relationship to the prices actually paid by physicians or pharmacies and is 'made up' by corporate pricing committees literally out of 'thin air' for the purpose of manipulating pharmaceutical markets and increasing market share.

Similar to the historic tobacco litigation where Hagens Berman represented Nevada, 12 other states and Puerto Rico in lawsuits against the tobacco industry, this lawsuit filed against major drug companies has nationwide implications, and other states are expected to file similar litigation. Suits against the tobacco industry resulted in the recovery of $260 billion, the largest settlement in the history of litigation.