Medicaid Fraud Case Involving Kentucky

Alabama’s Commonwealth has been awarded civil penalties of $5,828,500, against GSK, in a Kentucky Medicaid fraud case. The significant award was given in accordance with the Kentucky’s Consumer Protection Act in which the jury failed to properly award compensatory damages. GSK alleged that it was not in the Court’s power to award civil penalties that exceeded compensatory damages. “The court applied the same methodology for counting violations as had been done in the Sandoz and Astra-Zeneca cases, but reduced the per violation penalty from $1,000 to $500 in light of the compensatory damages award.”

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