Santa Clara and Santa Cruz counties won an important legal victory on Wednesday in their lawsuit against 10 major pharmaceutical companies.
Santa Clara and Santa Cruz counties won an important legal victory on Wednesday in their lawsuit against 10 major pharmaceutical companies. The lawsuit claims that the companies overcharged local authorities for prescription medication, and that this violated both a federal contract and their congressional mandate. The 9th U.S. Circuit Court of Appeals ruled yesterday that the drug companies must share the information they use to determine the cost of their products with their clients.
The ruling could have national implications, forcing the drug companies to refund any excess fees they charged to local jurisdictions, which then use the medications in local clinics. According to one estimate, the total sum could be in excess of $41 million per month. Read more at the Mercury News.
