Legal News Line Apr. 9, 2015, 12:46pm


AUSTIN, Texas (Legal Newsline) - A New Jersey-based pharmaceutical company will pay $25 million to settle a case in Texas over Medicaid fraud allegations, state Attorney General Ken Paxton said on Tuesday.

Glenmark Generics, Inc. USA was accused of fraudulently reporting inflated drug prices to the Texas Medicaid Fraud Program. Under the settlement, Texas will receive $11.25 million, which will go to the state's general revenue fund.

The federal government also will receive $11.25 million because the Medicaid program is jointly funded by the state and U.S. taxpayers. Glenmark also will pay Texas an additional $2.5 million in attorneys fees and costs.

“Identifying and preventing Medicaid fraud continues to be a top priority for the Office of the Attorney General,” Paxton said. “Thanks to our Civil Medicaid Fraud Division’s conscientious stewardship of the taxpayer-funded Medicaid program, Texas will receive an $11.25 million reimbursement from a New Jersey-based pharmaceutical manufacturer. The Office of the Attorney General will continue cracking down on waste, fraud and abuse in the Medicaid program.”

Since 2002, the Texas Attorney General's Civil Medicaid Fraud Division has recovered more than $600 million for the state, and recoveries for the state and federal governments has totaled more than $1.5 billion, Paxton said.

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