Dey settles state of Ohio pricing law suit

US specialty drugmaker Dey LP has reached a settlement with the Attorney General of the State of Ohio regarding pricing litigation that had been filed against it. John Kling, the firm's senior vice president of legal affairs, stated: "we are pleased that this settlement achieves a resolution to the pricing litigation brought by the state of Ohio. The net amount of cash paid to the state, after legal fees, and the federal government's share of the settlement, is $952,925." In addition, Dey will donate respiratory pharmaceuticals to certain Ohio health care centers for four years. These will be received by medically-underserved patient populations within the state, Mr Kling noted.

The claims against Dey in Ohio and elsewhere derive from a government reimbursement model that relied on published Average Wholesale Prices. Problems with this model are the primary reason that Congress and the Administration reformed the pricing system under the 2003 Medicare Modernization Act, noted Mr Kling. The state of Ohio acknowledges that the settlement does not constitute an admission of fault, liability, or unlawful conduct by Dey.