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ANTITRUST Jury orders drug maker to pay insurers $12M Washington (AP)-A federal jury has ordered Mylan Laboratories Inc. to pay at least $12 million to four insurance plans after finding that the generic drug maker violated antitrust laws by overcharging for two popular anti-anxiety medications. Canonsburg, Pa.-based Mylan was sued by Blue Cross Blue Shield plans in Massachusetts and Minnesota, as well as Federated Mutual Insurance Co. and Health Care Service Corp., for increasing its drug prices by up to 2,000% for lorazepam and clorazepate. Attorneys for the plaintiffs said the verdict could be tripled because the jury found that Mylan’s actions were willful. CONSUMER PROTECTION Judge orders distribution of $80M drug settlement Detroit (AP)-A federal judge has ordered the distribution of an $80 million class action settlement for 76,400 consumers who overpaid for blood pressure medication. A single objection delayed the payment for 18 months. Attorneys general from 14 states, sued Aventis Pharmaceuticals Inc. and Andrx Corp. in 2001, claiming that the companies had conspired to keep a cheaper, generic version of Cardizem CD off the market. Under the terms of the agreement joined by attorneys general for all 50 states, consumers who bought the drug between January 1998 and January 2003 were eligible to be compensated. But a Tennessee woman filed an objection to the settlement in November 2003, and the matter eventually went to the U.S. Supreme Court, which declined to hear an appeal on May 23. FRAUD Bristol-Myers to settle federal probe for $300M New York (AP)-Pharmaceutical company Bristol-Myers Squibb Co. is expected to settle a federal probe of its past accounting practices for $300 million. As part of the “deferred prosecution” agreement, the New York-based company will be able to avoid criminal charges if it complies with the terms of a deal with the U.S. Department of Justice, which include separation of chairman and chief executive titles. PATENTS Microsoft ordered to pay $9M to software maker Seattle (AP)-A federal jury in California has slapped Microsoft Corp. with a nearly $9 million judgment in a patent infringement lawsuit filed by a Guatemalan inventor. Carlos Amado, 50, sued Redmond, Wash.-based Microsoft, alleging that it had infringed on a patent he received in 1994 for software linking the company’s Excel spreadsheet and Access database programs. Amado developed the program in 1990 and offered to sell it to Microsoft two years later, but the company declined. Amado alleged that Microsoft added an application that mimicked his software to the company’s 1995 version of Office, the suite of programs that includes Excel and Access. REGULATORY ACTION HealthSouth settles SEC charges for $100 million Birmingham, Ala. (AP)-HealthSouth Corp. has said that it will pay $100 million over two years to settle charges brought by the Securities and Exchange Commission when corporate fraud at the medical services chain was exposed in March 2003. The SEC’s civil action accused both HealthSouth and fired CEO Richard Scrushy of overstating earnings by $1.4 billion since 1999. After further investigation, that number grew to $2.7 billion over seven years, beginning in 1996. The settlement, which applies only to the Birmingham-based company, is to be paid in five installments over two years beginning in the fourth quarter of 2005. SEXUAL ABUSE Kentucky diocese settles with victims for $120M Covington, Ky. (AP)-The Roman Catholic Diocese of Covington has agreed to set up a $120 million fund to compensate victims of sexual abuse spanning a half century. The settlement would conclude a class action on behalf of victims that accused the diocese of a cover-up of sexual abuse by priests and others over five decades. Compensation will be based on the severity of abuse, and will range from $5,000 to $450,000 per person. SHAREHOLDER SUIT Drugstore chain agrees to $110M settlement Providence, R.I. (AP)-Drugstore chain CVS Corp. has agreed to a $110 million settlement of a shareholders’ lawsuit that accused the company of making misleading statements and violating accounting practices. The lawsuit, filed in federal court in 2001, alleged that CVS made false statements so as to raise its stock prices artificially. It accused the company of delaying accounting on merchandise discounts, counting the items’ full value in its earning reports to help boost earnings. In addition, the company delayed reporting plans to close 200 stores.

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