South Carolina Personal Injury Law Blog

Drug Companies to Pay for Overcharging

A federal district court judge in Boston, MA found three drug makers liable last week for overcharging Medicare, pension funds, insurers, and patients for certain drugs.  In a nationwide class action lawsuit, plaintiffs alleged that AstraZeneca, Bristol-Myers Squibb, Johnson & Johnson, and Schering-Plough sold drugs to doctors at discounted prices while encouraging them to claim full reimbursement from insurers.  The judge dismissed claims against Johnson & Johnson.  A calculation of damages to be paid by the defendants is expected by August. 

Source:  "AstraZeneca, Bristol Overcharged on Drugs, Judge Says" by Cary O’Reilly, published at Bloomberg.com.

State Farm Sued For Failing to Disclose Vehicle Salvage History

State Farm admitted that they resold 30,000 wrecked vehicles with improper titles nationwide from 1997 through 2002.  Of course, without accurate titles, the buyers almost certainly overpaid and didn't know about potential hidden damage or safety problems. Consumer Reports says rebuilt salvage vehicles can be worth half of the book value or less.

State Farm has settled with the attorneys general of all states except Indiana, and it has paid $41 million to nearly 17,000 vehicle owners. Currently, owners who refused State Farm's settlement have filed more than 100 lawsuits against it and the dealerships where they bought the vehicles, for not disclosing the damage.

Source:  "State Farm Still Facing Problems From Salvage Title Controversy" by Robert Elder, published Austin American-Statesman.