James Matthews and Katy Koski Obtain Significant Victory for Watson Pharmaceuticals, Inc.

K&L Gates Boston partners James Matthews and Katy Koski recently obtained a complete defense verdict on behalf of Watson Pharmaceuticals, Inc. in a drug pricing proceeding in Kentucky.

Watson Pharmaceuticals, Inc. is an integrated global specialty pharmaceutical company. The company is engaged in the development, manufacturing, marketing and distribution of generic pharmaceuticals and specialized branded pharmaceutical products.

Watson was the fourth drug manufacturer tried in Kentucky since the case was filed against forty manufacturers in 2004. The Watson verdict was the first in favor of the defendants.

Kentucky and 24 other states have filed suits against drug makers alleging that industry practices in setting and reporting drug pricing benchmarks have caused damages to state Medicaid programs, which use those benchmarks in reimbursements to providers who dispense the drugs to Medicaid patients. Similar suits were filed on behalf of the United States. The manufacturers vigorously denied all claims, which were brought pursuant to various theories ranging from common law fraud to consumer protection and false claims act statutes.

Kentucky sought actual damages against Watson, which included punitive damages and penalties which could have exceeded $100 million.

Mr. Matthews and Ms. Koski will represent Watson in three similar cases pending in Alaska, Idaho, and Mississippi in 2012.