Nov 18, 2024
MEMPHIS, Tenn. -- Memphis-Shelby County Schools is suing multiple drug companies. Attorneys call it a mass action lawsuit, with nearly 100 other school districts across the country fighting back against the rise in insulin costs impacting those insured through MSCS. A WREG reporter spoke with an attorney representing MSCS in this lawsuit and he said consumer goods haven't doubled in the last 20 years but the cost of some diabetes medicine is up more than tenfold. Now, this 197-page lawsuit is pushing to cut the cost of insulin across MSCS. Attorneys claim city launched smear campaign against Tyre Nichols, family "They have insurance that they provide that they pay for - their staffing and everything," attorney James Frantz said. "And then through the insurance, they're charged outrageous rates for drug coverage and insulin coverage." Frantz is an attorney for MSCS and nearly 100 other school districts. He told WREG that the Center for Disease Control (CDC) said Tennessee is in the "Diabetes Belt", meaning they are one of 15 states with the highest rates of the disease. He also claims companies are jacking up prices of medicine used to combat the disease. "It went from $35 to $40 a vial to like $400 a vial. It's outrageous," Frantz said. "There's no rhyme or reason other than they just want to make more profit." Companies like Eli Lilly, Novo Nordisk, Sanofi-Aventis and CVS are listed on the lawsuit. Public Housing waitlist applications open for sites across Memphis In a statement to WREG, Lilly calls the allegations "baseless" and said, "It is the school district and other health plans—not Lilly—who negotiate the terms of their rebate arrangements." In a statement from Novo Nordisk, they said that believe the allegations in the lawsuits are "meritless". They added that while they won't be commenting further about pending litigation, they "recognize that not all patient situations are the same and have a number of different insulin affordability offerings." Frantz said litigation could take nearly four years to resolve. "Where that money that the schools have to spend when they shouldn't have to spend that much can be used for the school and for the children and for the programs and all that," Frantz said. "And we're going to recover that difference of what it should be versus what they're charging." WREG has reached out to MSCS but has not yet heard back.
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