Immediate Release

Wednesday, July 23, 2008 

For Information Contact

(315)  798-5800

Picente: Oneida County To Receive Settlement
In Medicaid Drug Price Fraud Suit

Oneida County Executive Anthony J. Picente, Jr., today announced that Oneida County will receive approximately $116,947 as part of a settlement of its claims against Bristol-Myers Squibb.  The settlement is a part of a nationwide settlement of similar claims that was negotiated by the County and by the State Attorney General’s Medicaid Fraud Control Unit.  The settlement will bring New York State and its counties over $40 million and will return to Oneida County almost the full value of its claims against the company.

Oneida County is committed to fighting fraud at every level,” Picente said. “We believe strongly in our responsibility to provide programs and services for those in need, but we will not allow the taxpayers of Oneida County to be the victims of unfair practices. The lawsuit is part of our efforts to fight for the people of Oneida County , and it is an effort that we will continue at every opportunity.”

Oneida County brought suit against 47 pharmaceutical companies, alleging that the defendants fraudulently reported inflated Average Wholesale Prices (AWPs) of their drugs, which form the basis for Medicaid payments.  This action resulted in millions of dollars of overcharges to Medicaid. The County alleged violations of Federal and State Medicaid law, Medicaid and common law fraud, breach of contract, unfair and deceptive trade practices, and unjust enrichment.  The County is seeking to recover its 25 percent share of Medicaid overpayments.

Oneida County ’s case was heard in the United States District Court in Boston , Mass.   In April and July 2007, Judge Patti B. Saris largely upheld plaintiffs’ claims, denying two motions to dismiss the Amended Consolidated Complaint of Oneida County, the City of New York and other New York counties participating in the federal action.

Kirby McInerney LLP, a law firm with expertise in health care, securities, antitrust and consumer litigation, represents Oneida County in this case, together with attorneys from the County Attorney ’s Office.  Joanne Cicala is Kirby McInerney’s lead attorney on the case.  Linda M.H. Dillon, Oneida County Attorney, is the lead County attorney on the case.
Joanne Cicala said:  “Kirby McInerney LLP is proud to represent Oneida County in this important matter, and to have achieved this result. We look forward to bringing the remainder of the case to trial in New York Federal Court in as short a term as possible.”