August 15, 2024
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Northampton County has officially joined Accomack County and other localities in a class action lawsuit alleging drug manufacturers of fixing the price of insulin.
According to County Administrator Charlie Kolakowski, one in 10 Virginians suffer from diabetes, and as many as one in eight in Northampton County. The lawfirm of Chap Peterson & Associates is filing this lawsuit because the price of insulin has risen 10 fold in the last two decades and is arguing the brunt of these costs falls on the localities through higher insurance payments.
The action named Eli Lilly and Company, Novo Nordisk Inc., Sanofi-Aventis U.S. LLC, Evernorth Health Inc., Express Scripts Inc., Express Scripts Administrators LLC, Medco Health Solutions, ESI Mail Pharmacy Services Inc., Express Scripts Pharmacy Inc., CVS Health Corporation, CVS Pharmacy Inc., Caremark Rx LLC, Caremark PCS Health LLC, Caremark LLC, United Health Group Inc., Optum Inc., OptumRx Inc., and Optuminsight Inc.
It alleges the companies violated the Racketeer Influenced and Corrupt Organizations Act, known as RICO; conspired to violate the act; violated the Virginia Consumer Protection Act, committed civil conspiracy; and received unentitled enrichments for their acts.
A two year Congressional investigation concluded several manufacturers and distributors colluded to raise the cost of insulin.
Kolakowski reported the law firm would take 35% of whatever monies were awarded in the lawsuit, meaning there would be no direct costs to the County to join the suit.
The Board unanimously approved the motion to sign the letter of engagement.
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