Arkansas Attorney General Tim Griffin announced Wednesday that the state has filed a lawsuit against multiple pharmaceutical manufacturers and a data management company, alleging they violated state law and engaged in unconscionable trade practices by restricting access to federally required prescription drug discounts.
The lawsuit, filed in Polk County Circuit Court, names 22 defendants, including 13 drug manufacturers, related corporate entities and Second Sight Solutions LLC.
Arkansas alleges the companies violated the Arkansas Deceptive Trade Practices Act by implementing policies that interfered with healthcare providers’ access to discounts available through the federal 340B Drug Pricing Program.
Established by Congress in 1992, the 340B program requires pharmaceutical manufacturers that participate in Medicare and Medicaid to sell outpatient prescription drugs at discounted prices to qualifying hospitals, clinics and other healthcare providers.
According to the lawsuit, those savings help providers keep clinics open, care for uninsured patients, expand specialty services and maintain healthcare access in rural communities.
Arkansas lawmakers approved Act 1103 in 2021 to protect healthcare providers’ ability to obtain 340B-priced medications through contract pharmacies.
State officials said Arkansas was the first state to enact such legislation.
According to Griffin’s office, drug manufacturers challenged Act 1103 in federal court but were unsuccessful after the law was upheld by both a federal district court and an appellate court.
The U.S. Supreme Court later declined to review the case.
Rather than complying with the law, the complaint alleges manufacturers adopted new restrictions that continued to limit providers’ access to discounted drugs.
Arkansas claims companies imposed additional administrative requirements, including demands for claims information and medical data before providers could receive 340B pricing.
The lawsuit further alleges those requirements changed frequently and became increasingly burdensome, making compliance difficult for many hospitals and clinics.
Arkansas contends the restrictions reduced the savings healthcare providers depend on to fund patient care, particularly in rural communities, and forced providers to either comply with changing requirements or lose access to discounted medications.
The complaint also alleges Second Sight Solutions LLC operated a web-based platform used to help administer and coordinate many of the manufacturers’ restrictions.
Among the companies named in the lawsuit are AbbVie, Amgen, AstraZeneca, Bristol Myers Squibb, Eli Lilly, GlaxoSmithKline, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer and Sanofi, along with several related corporate entities.
The state is seeking civil penalties for each alleged violation of the Arkansas Deceptive Trade Practices Act, a court order prohibiting the continued use of the challenged restrictions in Arkansas and recovery of litigation costs.
