Arizona sues drug firm, alleging scheme to skip Medicaid rebates

Arizona Attorney General Kris Mayes is suing British drug manufacturer GlaxoSmithKline over allegations that the company used misleading business practices that put consumers in danger. 

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The lawsuit accuses the pharmaceutical company of discontinuing its widely used medication, Flovent, and replacing it with an identical product in an effort to avoid paying rebates to Medicaid due to the drug’s high price. 

“GSK essentially just renamed Flovent,” the attorney general said in the lawsuit. 

Ms. Mayes is seeking a declaration that the company violated the Arizona Consumer Fraud Act, which prohibits companies from selling a new drug at artificially inflated prices, and maximum statutory penalties of up to $10,000 per violation, according to Courthouse News Service

Becker’s has reached out to GSK for comment and will update this article if more information becomes available. 

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