AG Cooper says state could lose millions if tort reform becomes law

State Attorney General Roy Cooper weighed in Thursday on tort reform legislation in the state House.

Cooper said that North Carolina could lose millions in legal settlements if House Bill 542 becomes law.

The bill, which was passed out of committee on Thursday and heads to the House for a vote next week, says drug companies can only be sued by those harmed by an FDA-approved drug if the approval was obtained by fraud or bribery.

The AG’s office typically investigates and brings suit, or joins other states in lawsuits, against drug manufacturers for such things as withholding negative information from scientific studies, marketing drugs for improper uses or marketing adult drugs to children.

In the past 10 years, the state has recovered more than $400 million through its Medicaid investigations unit, many of that from settlements with pharmaceutical companies.

“North Carolina’s work to uncover wrongdoing and get reimbursements is at risk, and creating this huge loophole is foolish,” Cooper said in a statement. “Instead of increasing the effort to crack down on Medicaid fraud this bill sets our state apart as a place with no rules and no consequences.”

Money from the settlements fund the state’s Medicaid program and support public schools.

According to Cooper’s office, provisions in the bill could keep North Carolina from recovering even the cost of buying a contaminated drug.