November 21, 2007

Alabama: "A state contract hiring trial lawyers to sue drug companies over allegations of overpricing will be submitted to the Legislative Contract Review Committee this week, nearly three years after it was signed," the Birmingham News reported late last month. "Medicaid Commissioner Carol Steckel signed the Jan 6, 2005, contract hiring Birmingham firm Hand, Arendall" at a 14 percent contingency to file the pharmaceutical pricing suit, which could bring the state hundreds of millions. By Alabama law the legislative panel is supposed to oversee such contracts, though it has little formal power and cannot cancel them. The state says it submitted the contract for the panel's review but never heard back; "Contract Review records do not reflect the committee ever receiving the contract."