Kansas files price-gouging lawsuit

Florida distributor accused of taking advantage of flu vaccine shortage

? State Atty. Gen. Phill Kline filed a lawsuit Tuesday against a Florida pharmaceutical distributor, accusing the company of trying to make “unconscionable profits” from the sale of flu vaccine in Kansas.

“It is vitally important that people understand — those who desire to do business in Kansas — that we will not stand by as powerful forces attempt to exploit the vulnerable and jeopardize the health of many in an effort to unconscionably benefit,” Kline said.

Kline said Fort Lauderdale, Fla.-based Meds-Stat violated prohibitions against price gouging included in the Kansas Consumer Protection Act when it sold flu vaccine to Degolar Pharmacy in Kansas City, Kan.

Last week, British regulators shut down a vaccine plant in England, halting shipments of 46 million to 48 million doses of vaccine intended for American consumers. That left the United States with only 58 million shots for the more than 100 million people most vulnerable to the flu, according the Centers for Disease Control and Prevention.

The lawsuit, filed in Shawnee County, charges that on Friday, Meds-Stat proposed to sell flu vaccine to the pharmacy for $900 a vial. A week earlier, the company was selling the vaccine for $85 per vial.

Each vial contains roughly 10 doses, Kline said.

Meds-Stat vice president Sam Karsch did not immediately return a message seeking comment.

The lawsuit also charges the company with misrepresenting its license in Florida when it solicited Kansas customers.

The lawsuit seeks an injunction preventing the company from representing themselves as licensed sellers of pharmaceuticals and seeks $10,000 for every violation of the law. It also asks that the defendants be ordered to process all flu vaccine orders received from Kansans at a fair market price.

The lawsuit names Meds-Stat and its owners ASAP Meds Inc., Gulf Components Holding Co., and others.

Deputy Atty. Gen. Bryan Brown said media reports indicated price gouging was happening nationwide since the shortage of flu vaccine was announced.