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Iowa attorney general sues drug firms

October 12, 2007
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A lawsuit filed by Iowa Attorney General Tom Miller alleges that drug companies inflated prices of prescription drugs by millions of dollars causing state and federal governments to overpay for medicine prescribed for Medicaid recipients, the Associated Press reports. The lawsuit, filed in U.S. District Court, alleges that 79 drug companies intentionally deceived the state Medicaid program, which pays for medical care and drugs for the elderly and poor. The lawsuit claims breach of contract, fraud, unjust enrichment and violations of federal Medicaid laws and the Iowa Consumer Fraud Act. It asks the court to permanently stop the companies from the practice of inflating drug prices and to award the state punitive and compensatory damages. It also seeks reimbursement of any illegal profits from the alleged scheme and restitution for the overcharged amount.

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