Government Joins Whistleblower Lawsuit Against Wyeth

Greg Webb — Mon, 01 Jun 2009 08:00:00 GMT

The United States, as well as sixteen states, joined whistleblower lawsuits that claim Wyeth, a drug manufacturer that is being acquired by Pfizer Inc., avoided paying hundreds of millions of dollars to consumers in rebates under the Medicaid program. The failed rebates involve the drugs Protonix Oral and Protonix IV, which are used to suppress stomach acid.

The states and Justice Department joined the lawsuit because they believe Wyeth did not pay hundreds of millions of dollars in rebates though it was required to grant the Medicaid program the same discount it offered to hospitals. Assistant attorney general for the Justice Department’s civil division said Wyeth’s policy of offering massive discounts to hospitals, but then hiding information from the Medicaid program, caused the government to pay much more for the drugs than they should have. A spokesman for Wyeth, however, claims there were no mistakes in the pricing and the company will defend itself against these accusations.

Originally posted at InjuryBoard by Greg Webb

Recent Supreme Court Ruling Bring Back Issue of Medical Devices

Greg Webb — Sat, 21 Mar 2009 21:31:52 GMT

The U.S. Supreme Court recently ruled that consumers can sue drug makers for defective warnings, though earlier ruled consumers cannot sue medical device manufacturers if the device was FDA approved. This seemingly contradictory ruling claims federal law does not protect drug companies from product liability suits in state courts, though it earlier decided federal law prevents lawsuits against the manufacturers of such medical devices as heart stints and artificial joints. In the drug maker case, the defendant, drug manufacturer Wyeth, argued federal oversight of drug labels by the Food and Drug Administration (FDA) precluded state courts from hearing drug injury lawsuits; the Court ruled, however, that consumers may sue the manufacturer in state court for a defective warning. The Court distinguishes the two cases by pointing out that there are different legal issues involved.

Experts believe that after this decision, there may be an influx in the amount of lawsuits drug makers will face because the FDA approved label will not provide a cover for the industry. Drug maker supporters fear the verdict could make companies more reluctant to produce beneficial drugs if the drugs pose a high risk. The decision could also offer support to some members of Congress who are planning to introduce a bill that would supersede the Court’s medical device ruling, thus allowing injured people or their survivors to sue faulty device makers. Many hope the outcome will lead to more updated labels of possible side effects, though it would require FDA approval every time.

The Wyeth ruling was a victory for consumers – for normal citizens. It was a blow to big business, especially the pharmaceutical industry. If it could, the pharmaceutical industry would have the federal government give it blanket immunity from any law suits, no matter how egregious its conduct. Because the FDA is unable to adequately police the pharmaceutical industry (for a variety of reasons, including funding), one of the most effective checks on that industry is the product liability lawsuit. Wyeth gave this writer hope that that our Court is not turning into the “Corporation Court”, rubber-stamping whatever the industry wants.

Originally posted at InjuryBoard by Greg Webb

Charlottesville Personal Injury Lawyer - Wyeth

Government Joins Whistleblower Lawsuit Against Wyeth

Recent Supreme Court Ruling Bring Back Issue of Medical Devices