A class-action lawsuit was filed in federal court in Massachusetts against GlaxoSmithKline and 22 other pharmaceutical companies alleging consumers are harmed by the way the companies price their drugs. The companies set prices using the Average Wholesale Price (AWP) formula. The government uses average wholesale prices as reported by drug companies to set reimbursements from federal health programs. Plaintiffs claim drugmakers artificially inflated their prices as part of a scheme to overcharge consumers. In August 2006, GlaxoSmithKline agreed to a proposed $70 million settlement.