Attorney General Patrick Morrisey
announced West Virginia
“Our office represented the state,
PEIA and Medicaid in this legal challenge, and we are pleased that we were able
to recoup some of the money spent on these products,” Morrisey said. “We will
always vigorously enforce the laws.”
The lawsuit alleged GSK failed to
disclose the side effects of the drugs when it was marketing the medicine as a
product to lower patients’ blood sugar and reducing diabetics’ cardiovascular
risks.
“Our citizens have the right to
know the risks and possible side effects of the medication they are taking,”
Morrisey said.
On March 26, the Centers for
Medicare and Medicaid Services deemed the state was entitled to all of the
settlement money after the attorney general’s office and state agencies sent a
letter seeking CMS’s input. By seeking CMS’s input during the process, the
office was able to assure CMS would not pursue money from the state in the
future.
“As part of this settlement, we
wanted to make sure everything was handled appropriately and openly,” Morrisey
said. “We instituted a different process so that the state was protected.”
The settlement also was contingent
upon the attorney general’s office prevailing last year in the case SER
Discover Financial Services Inc., et al v. David W. Nibert and SER
GlaxoSmithKline LLC v. James H. Young Jr. In that case, GSK and several large
banks filed a motion in the West Virginia Supreme Court of Appeals that sought
to disqualify the outside counsel lawyers who were representing the state.
According to the office, revenues
from the settlement will be used to shore up several state funds benefiting West Virginians and reduce budget shortfalls.
Based on a settlement agreement
with GSK, the state’s Public Employees Insurance Agency will receive nearly
$10.6 million, while the Department of Health and Human Resources’ Medicaid
program will receive $3.7 million. The Attorney General’s Consumer Protection
Fund will receive nearly $3.1 million.
The remaining $4.6 million will go
to attorneys’ fees and expenses.
“This settlement is a significant
victory for the state, its agencies and the people,” Morrisey said. “I was
pleased to be able to work with Gov. Tomblin and his staff to ensure the monies
recovered were returned to those agencies that were most impacted in this
matter, while at the same time ensuring the Consumer Protection Division
maintains three years of operating expenses.”
The lawsuit was filed on behalf of the state of West Virginia
