Dateline 11/5/2009 - Download the Medicaid fraud press packet

Beasley Allen founding shareholder Jere L. Beasley speaks out on recent Alabama Supreme Court decision in state Medicaid Fraud lawsuits; asks Court to grant oral argument.

MONTGOMERY, ALA. (November 5, 2009) - The State of Alabama has filed an application for rehearing in the State's three Medicaid fraud lawsuits that were reversed by the Alabama Supreme Court. All of the State's lawyers were shocked when the Alabama Supreme Court, in reaching their decision, ignored the trial record in the cases. In fact, it appears from their decision that the majority of the Court failed to even read the record or for some reason saw fit to totally ignore what had actually taken place at the three separate trials. We have asked the Court to grant oral argument on our application to rehear each of the cases.

I would encourage all members of the news media who are interested in finding out what the Court did on the appeals to attend the hearing. That is - in the event we are allowed to present the State's case in person before the Justices in open court. Most folks are shocked to learn that the Supreme Court refused oral argument in this extremely important litigation.

I also find it most unusual that the defendants' bad conduct was barely even mentioned by the court in their opinion. To say that the decision reached by the Court is most difficult to understand is a gross understatement. There are several things I would like to point out concerning this litigation:

• You may recall at the outset of this litigation, the trial judge consolidated a number of the cases to be tried in a single trial. The Alabama Supreme Court, on a Writ of Mandamus, said the cases could not be consolidated since each was to be considered on its own merits. Now on appeal, without notice to the State of Alabama, the same Supreme Court consolidated the three cases into one case.
• You will find in the Supreme Court's opinion at least 25 separate instances where 6 of the Justices either ignored or misstated the actual record from the trial of the AstraZeneca case or failed to follow established Alabama law.
• After an intensive investigation by the federal government, it was reported in 2003 that the drug manufacturers had been committing massive frauds relating to reporting of prices for reimbursement in the Medicaid program. The Office of Inspector General issued guidelines designed to eliminate the fraudulent conduct. If the federal government hadn't known about the fraudulent activity before 2003, how could individual state Medicaid agencies, which were both underfunded and understaffed, be expected to know that the drug manufacturers were reporting false prices?
• Committing fraud against the Medicaid program hurts the elderly, the disabled, the young, and the poor as well as every Alabama taxpayer.
• AstraZeneca - one of the companies on appeal - entered a guilty plea to a charge of criminal fraud in federal court involving state Medicaid reimbursement fraud.
• AstraZeneca paid a criminal fine of $570 million relating to that criminal guilty plea.
• AstraZeneca then settled state Medicaid fraud cases involving reimbursement for $355 million.
• A top official at AstraZeneca prepared an internal pricing document which was a virtual roadmap for how to cheat state Medicaid agencies.
• AstraZeneca, as a part of the settlements mentioned above, agreed to submit true prices to state Medicaid agencies.
• AARP - a national group with 500,000 Alabama members - has fully supported Alabama in its lawsuit against the drug companies and in the appeal.
• 13 state Attorneys General have also supported Alabama's position and each filed a brief on Alabama's behalf.
• Since the Alabama case was tried - and after the AstraZeneca case was appealed in July 2008 to the Alabama Supreme Court - a Federal Appeals Court heard a separate appeal in a case where AstraZeneca was found guilty in Federal Court of fraudulent conduct in a Medicaid reimbursement case. In a strong opinion, just before the Alabama Supreme Court's opinion came out, the federal appeals court affirmed the trial court finding AstraZeneca guilty of fraud.
• The Federal Appeals Court in that case found that AstraZeneca was guilty of extremely bad conduct.
• A Kentucky jury, after hearing the same evidence we had developed and presented in our Alabama cases, returned a verdict against AstraZeneca in the amount of $14.72 million. This verdict came just one day before Alabama's cases were reversed.
• On behalf of the State of Alabama - we have settled lawsuits with several drug manufacturers in Alabama - under the very same law - and with the very same facts involved in these 3 cases - for $138 million.

Taking all of the above into consideration, and knowing firsthand the facts of this case, it is impossible to see how the Alabama Supreme court could side with the drug companies and against those citizens of Alabama who are in the Medicaid program and also against all Alabamians who pay taxes that support the program. All Alabamians are the losers and politically powerful drug companies have been declared winners by the Alabama Supreme Court. This is a sad day for the Alabama Medicaid Program and all Alabama taxpayers. It's also a sad day for justice in Alabama.

We are asking the Supreme Court to reconsider what they have done and we have again asked for oral argument. We want an opportunity to appear before the Court and argue the State's case in person.

Hopefully, the Court will grant oral argument so that the people of Alabama can find out exactly what has happened to them and how it happened. But more importantly, it will give the Justices an opportunity to read the record and them to correct an injustice.

More Information

Download the Complete Press Packet from today's press conference

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• Committing fraud against the Medicaid program hurts the elderly, the disabled, the young, and the poor as well as every Alabama taxpayer;
• AstraZeneca - one of the companies - entered a guilty plea to a charge of criminal fraud in federal court involving state Medicaid reimbursement;
• AstraZeneca paid a criminal fine of $570 Million relating to that criminal guilty plea;
• AstraZeneca settled state Medicaid fraud cases involving reimbursement for $355 Million;
• A top official at AstraZeneca prepared an internal pricing document containing a virtual roadmap for cheating state Medicaid agencies;
• AstraZeneca as a part of the settlements mentioned above - agreed to submit true prices to state Medicaid agencies;
• AARP - a national group with 500,000 Alabama members - has fully supported Alabama in its lawsuit against the drug companies and in the appeal;
• 13 state Attorneys General have supported Alabama's position and each filed a brief on Alabama's behalf;
• Since the Alabama case was tried - and after the case was appealed in July 2008 to the Alabama Supreme Court - a Federal Appeals Court heard a separate appeal in a case where AstraZeneca was found guilty in Federal Court of fraudulent conduct in a Medicaid reimbursement case - in a strong opinion and affirmed the trial court;
• The Federal Appeals Court found that AstraZeneca was guilty of extremely bad conduct;
• Yesterday, a Kentucky jury, after hearing the same evidence Alabama lawyers developed and presented in the Alabama case, delivered a verdict against the drug manufacturer in the amount of $14.72 million; and

Taking all of the above into consideration, and knowing the facts of this case, it is extremely difficult to see how the Alabama Supreme Court could side with the drug companies and against the citizens of Alabama who are in the Medicaid program and against all Alabamians who pay taxes that support the Medicaid program. These folks are the losers today and politically powerful drug companies declared winners by the Alabama Supreme Court. This is a sad day for the Alabama Medicaid Program and all Alabama taxpayers.

We will ask the Court to reconsider what they have done. We will also again request an opportunity to appear before the Court and argue the State's case. Hopefully, the Court will grant oral argument to the State so that the people of Alabama can find out exactly what has happened to them.

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By refusing to allow oral argument, the Court did not allow the members of the news media who had not attended the actual trials that began in 2008 to hear first hand about the bad conduct of these companies. The AstraZeneca case had been pending for so long that even the few members of the news media who attended that trial may have forgotten how strong the State's case against that defendant really was.

I also find it most unusual that absolutely nothing relating to the defendants' bad conduct was even mentioned by the court in their opinion. The decision reached by the Alabama Supreme Court is most difficult to understand when you consider that:

• The federal government did an investigation in 2002 and reported in 2003 that the drug manufacturers had been committing massive frauds in the Medicaid program and issued guidelines designed to eliminate the fraudulent conduct. If the federal government hadn't known about the fraudulent activity how could individual state Medicaid agencies be expected to know, especially since most have been underfunded and understaffed?
• Committing fraud against the Medicaid program hurts the elderly, the disabled, the young, and the poor as well as every Alabama taxpayer.
• The federal government had conducted an investigation and found massive frauds by drug manufacturers in the state Medicaid programs.
• AstraZeneca - one of the companies - entered a guilty plea to a charge of criminal fraud in federal court involving state Medicaid reimbursement.
• AstraZeneca paid a criminal fine of $570 million relating to that criminal guilty plea.
• AstraZeneca settled state Medicaid fraud cases involving reimbursement for $355 million.
• A top official at AstraZeneca prepared an internal pricing document containing a virtual roadmap for cheating state Medicaid agencies.
• AstraZeneca as a part of the settlements mentioned above agreed to submit true prices to state Medicaid agencies.
• AARP - a national group with 500,000 Alabama members - has fully supported Alabama in its lawsuit against the drug companies and in the appeal.
• 13 state Attorneys General have supported Alabama's position and each filed a brief on Alabama's behalf.
• Since the Alabama case was tried - and after the case was appealed in July 2008 to the Alabama Supreme Court - a Federal Appeals Court heard a separate appeal in a case where AstraZeneca was found guilty in Federal Court of fraudulent conduct in a Medicaid reimbursement case - in a strong opinion and affirmed the trial court.
• Federal Appeals Court in that case found that AstraZeneca was guilty of extremely bad conduct.
• A Kentucky jury, after hearing the same evidence we had developed and presented in the Alabama case, delivered a verdict against the drug manufacturer in the amount of $14.72 million. This verdict came one day before Alabama's cases were reversed.
• We had settled with several drug manufacturers in Alabama - with the very same law and the very same facts involved - for $138 million.

Taking all of the above into consideration, and knowing the facts of this case, it is extremely difficult to see how the Alabama Supreme court could side with the drug companies and against the citizens of Alabama who are in the Medicaid program and against all Alabamians who pay taxes that support the program. All Alabamians are the losers and politically powerful drug companies declared winners by the Alabama Supreme Court. This is a sad day for the Alabama Medicaid Program and all Alabama taxpayers.

We have asked the Supreme Court to reconsider what they have done. We again requested an opportunity to appear before the Court and argue in person the State's case. Hopefully, the Court will grant oral argument so that the people of Alabama can find out exactly what has happened to them.

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Pictured are, from left, Montgomery Mayor Todd Strange, State Bar President Thomas J. Methvin of Montgomery (Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.); Patrick L.W. "Pat" Sefton, president of the Montgomery County Bar Association (Sasser, Sefton, Tipton and Davis, P.C.); and Royal Dumas, chairman of the MCBA Pro Bono Committee (Hill, Hill, Carter, Franco, Cole & Black, P.C.).

Today Montgomery Mayor Todd Strange presented a Proclamation officially declaring Pro Bono Week in the City of Montgomery, October 25-31, 2009. The resolution was presented to State Bar President Thomas J. Methvin of Montgomery (Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.); Patrick L.W. "Pat" Sefton, president of the Montgomery County Bar Association (Sasser, Sefton, Tipton and Davis, P.C.); and Royal Dumas, chairman of the MCBA Pro Bono Committee (Hill, Hill, Carter, Franco, Cole & Black, P.C.).

"Providing access to justice for those who cannot afford it levels the playing field. When we improve access to the state's courts we are actually helping Alabama families help themselves," Methvin said.

The situation is particularly acute now as the recession has caused many financial problems to morph into legal problems and increasing numbers of the poor and disadvantaged are turning to legal aid programs because they have nowhere else to go. The right to counsel in civil cases is necessary to make equal justice under law a reality. But last year, for more than half a million poor persons in Alabama, the only reality was a pressing legal problem that went unresolved.

Methvin said that the types of unresolved civil legal problems include: women who are seeking protection from abuse, mothers trying to obtain child support or custody of their children, families who are facing unlawful eviction or foreclosure that could leave them homeless, and individuals who have lost their job and need unemployment benefits.

During Pro Bono Week, lawyers in each of the state's 42 judicial circuits will participate in events such as: conducting free legal clinics offering advice and counsel in areas such as elder and family law; discussing with community and civic groups the critical need for the Legislature to provide a continuous stream of funding for legal services, and recruiting additional lawyers to volunteer to provide pro bono service.

Additionally, the Montgomery County Bar Association has plans for continuing pro bono outreach in Montgomery County. The MCBA will debut a monthly free legal services clinic, which will operate on the first Tuesday of each month, beginning on Tuesday, Nov. 3. Clinics will be held from 3-6 p.m. at 1100 Adams Avenue, in downtown Montgomery at the Head Start Educational Building. The clinics are sponsored by MCBA and the Montgomery Community Action Agency.

Currently, Alabama ranks 51st in the U.S. and its territories in the amount of funding provided for civil legal aid. On average, the state spends $10 annually for every low-income citizen and this rank places us behind every state and Puerto Rico.

"We are grateful to our elected representatives for including in the state budget funds for legal aid but it's still a shameful situation. Given the tough economic times we are facing, we have to do more," Methvin said. He has dedicated his term in office to improving access to justice.

According a nationwide survey conducted by the American Bar Association earlier this year, 73 per cent of lawyers reported that they had provided free legal work to people of limited means.

The 16,000-member Alabama State Bar is dedicated improving the administration of justice and increasing public understanding and respect for the law. 

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Historic Rockingham North Carolina Speedway will host the last race of the 2009 ARCA series, the Carolina 200, on Sunday.  The Rockingham race is a two-day program, with inspection, practice and qualifying taking place on Saturday. The 200-mile race will be on Sunday, Oct. 11 at noon CST with Speed TV's delayed telecast to be aired at 9 p.m. CT Sunday night.

BeasleyAllen.com racing's ARCA crew began the 2009 season at Rockingham, qualifying eighth before falling out of contention due to a pit stop error. This trip, they've got their sights set on first.

"We are determined to end our season with a top finish Sunday," Enfinger said. "We are determined to put the BeasleyAllen.com car in Victory Lane."

Race fans will have a chance to see one of the BeasleyAllen.com ARCA cars in Montgomery in November. Enfinger will bring a car to Beasley Allen's Legal Strategies Conference and Expo, the largest continuing education event in the state for Alabama lawyers in private practice. That event is set for Nov. 20-21 at the Renaissance Montgomery Hotel & Spa at the Convention Center, in downtown Montgomery.

Two weeks after his visit to Montgomery, Enfinger will pilot the Beasley Allen Super Late Model at the Snowball Derby.

BeasleyAllen.com Racing promotes the Beasley Allen law firm to race fans throughout the southeastern United States, while also working to bring attention to the battle against Cystic Fibrosis. Enfinger is a graduate of the University of South Alabama (Mobile) Mitchell School of Business, with an emphasis in marketing. Since his graduation in December 2007, he has devoted his time and energy to his racing career. Helping Grant in the shop on a daily basis is Craig "Snowman" McCrimmon. 

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Enfinger negotiated traffic quickly at the race start, putting the BeasleyAllen.com car in the top 10. He was as high as second place during the race, finally maintaining third during the final 30 laps of racing. While there is one remaining ARCA race at Rockingham Oct. 11, the race at Kansas Speedway marked the end of the Beasley Allen sponsored ARCA events.

"We would love to get sponsorship for Rockingham, but Beasley Allen put us in one more race than it originally committed and we are grateful for that," Enfinger said. "One year ago, we had one unproven ARCA short track car. Beasley Allen has enabled us to put this race team on the national stage and provided the resources for us to compete with established, professional teams associated with veteran NASCAR organizations," he said.

Enfinger will bring one of the ARCA cars to Beasley Allen's Legal Strategies Conference and Expo, the largest continuing education event in the state for Alabama lawyers in private practice. That event is set for Nov. 20-21 at the Renaissance Montgomery Hotel & Spa at the Convention Center, in downtown Montgomery.

Two weeks after his visit to Montgomery, Enfinger will pilot the Beasley Allen Super Late Model at the Snowball Derby.

"We put the BeasleyAllen.com car on the pole, establishing a track record lap time and finishing second last year. The only way we can improve is to win the Derby, and we are going to give it our all to do that, Enfinger said.

BeasleyAllen.com Racing promotes the Beasley Allen law firm to race fans throughout the southeastern United States, while also working to bring attention to the battle against Cystic Fibrosis. Enfinger is a graduate of the University of South Alabama (Mobile) Mitchell School of Business, with an emphasis in marketing. Since his graduation in December 2007, he has devoted his time and energy to his racing career. Helping Grant in the shop on a daily basis is Craig "Snowman" McCrimmon. 

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Enfinger is gunning for the checkered flag this time out, to put the icing on an impressive series of finishes in his last races. He took third at Talladega, which really made the racing circuit sit up and take notice, then turned in consecutive nail-biting second place finishes at Kentucky Speedway and Chicagoland Speedway, running neck-and-neck with more experienced drivers and just barely missing the win.

At this point, weather is Enfinger's greatest concern for Kansas. Rain is forecast for the Kansas Speedway on Thursday, which could cancel qualifying. In that case, the field will be set by points. Although he has finished near the front on most of his ARCA starts, Enfinger doesn't have as many season owner points as other drivers. However, he is not letting a possible start at the back of the pack dampen his plans for a win.

"If we have to start in the back, we'll just pass more cars," Enfinger says. "We are going to Kansas to win and whether we practice, qualify or the race is delayed, we are going to run the BeasleyAllen.com car as hard as we can."

BeasleyAllen.com Racing promotes the Beasley Allen law firm to race fans throughout the southeastern United States, while also working to bring attention to the battle against Cystic Fibrosis. Enfinger is a graduate of the University of South Alabama (Mobile) Mitchell School of Business, with an emphasis in marketing. Since his graduation in December 2007, he has devoted his time and energy to his racing career. Helping Grant in the shop on a daily basis is Craig "Snowman" McCrimmon.

Read more information about Enfinger and the Kansas track and about BeasleyAllen.com Racing.

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Registration is $125 per player, which includes a golf shirt, lunch and tournament gift bag. Several sponsorship levels also are available. Golfers will check in at Wynlakes Golf & Country Club beginning at 7:30 a.m. the day of the tournament, with a shotgun start scheduled for 8:30 a.m. and lunch at 12:30 p.m. Special prizes will be awarded for closest to the pin and longest drive.

 "Father Walter's is an amazing facility that provides essential services to children who face severe challenges," said Beasley Allen attorney Bill Robertson, who is on the MCAJ board of directors and serving as tournament chair for the second year. "Not only do they meet these kids' physical needs, but they help them to lead rich lives in spite of the challenges they face. This golf tournament provides us with an opportunity to really give back, and to help support them in this critical work that they do on behalf of these children."

To register for the tournament, or for more information about available sponsorship opportunities, contact Bill Robertson at 334-269-2343 or bill.robertson@beasleyallen.com; or Jimmy Rogers at Resurrection Catholic Missions at 334-230-1952 or jrogers@rcmsouth.org.

About Father Walter Memorial Child Care Center

Father Walter Memorial Child Care Center is home to 54 children with profound physical and mental challenges. Children at the facility range in age from birth to 21 years of age. The challenges these children face are huge, and Father Walter's goal is to provide them an environment in which they are given the best possible medical care, learning and growth experiences, and a loving home.

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Mesothelioma is a deadly cancer that most often affects the lining of the chest and lungs, but which also may affect the lining of the abdomen or, more rarely, the heart. It is caused only by exposure to asbestos. The latency period for mesothelioma is generally long, spanning 10 to 50 years from the time of exposure to any symptoms developing, making it hard for mesothelioma sufferers to pinpoint when they were exposed. There is currently no know cure for mesothelioma.

"In the past, mesothelioma was seen primarily in older men, who had worked in factories, as insulators, or in shipyards, where asbestos was commonly used. However, today, the disease is being diagnosed more frequently in younger people and more often in women," Lewis said. "Most of these cases are the result of secondary exposure, such as family members exposed to asbestos dust on the clothes of someone who worked with the substance. It could also be the result of environmental exposure. Mesothelioma has become everybody's problem," she says.

Asbestos is still not completely banned in the United States. For more information, visit www.myMeso.org.

About the Mesothelioma Applied Research Foundation

The Mesothelioma Applied Research Foundation is the national non-profit dedicated to ending the suffering caused by mesothelioma by funding mesothelioma research, by educating patients, and by advocating for federal mesothelioma funding. For more information, visit www.curemeso.org.

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"It is tragic to talk to people who thought they were doing a good thing, that they were doing the right thing, by buckling up their children in safety seats," Sawyer said. "Then they find out that the seats weren't installed properly, and they blame themselves if their child is injured."

All 50 states, the District of Columbia and our territories have laws requiring the use of child safety seats, booster seats and seat belts for children traveling in motor vehicles. These laws were enacted because of the tremendous safety benefits they provide, helping to save lives and prevent serious injuries in the event of a crash. However, three out of every four child restraints are not properly used.

During National Child Passenger Safety Week, there will be hundreds of free child seat inspection stations set up throughout the country,beginning on Saturday, Sept. 12. Parents and caregivers are encouraged to take advantage of this service and ensure their childrenare getting the very best protection.

For more information, visit http://www.cdc.gov/motorvehiclesafety/child_passenger_safety/childseat-spot.html.

Pictured: Beasley Allen attorney J.P. Sawyer, left, accepts a proclamation from Montgomery Mayor Todd Strange declaring Child Passenger Safety Week.

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