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Alabama Supreme Court Tosses $78M Verdict

The Alabama Supreme Court overturned a $78 million verdict the state won against drug manufacturer Sandoz, Inc. The court ruled 7-1 in an unsigned opinion that the case should not have made it to a jury, much less resulted in a verdict against the company. The state won the verdict in 2009 claiming the company made Alabama Medicaid pay too much for prescription medication over a 14-year period ending in 2005. The jury ordered the company to pay $28 million to compensate Medicaid for its losses and $50 million in punitive damages. The Supreme Court ruled that the state based its reimbursement payments on policy concerns and regulations and not on actions by the company.

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