Drug maker settles with three states, feds

By Keith Loria | Jul 20, 2010


AUSTIN, Texas (Legal Newsline) - Texas Attorney General Greg Abbott announced on Tuesday that, as part of a $169 million multistate settlement, Texas will receive $51.4 million from a pharmaceutical company for alleged Medicaid fraud.

Teva Pharmaceuticals, Inc., allegedly reported false prices to the Texas Medicaid program. The alleged fraud was conducted in Florida and California as well. As part of the agreement, Teva will pay the three states and the U.S. government a total of $169 million.

Abbott learned of the alleged fraud by industry whistleblower Ven-a-Care of Florida Keys, Inc. Abbott's office, in conjunction with the Texas Health and Human Services Commission, alleged that the company incorrectly reported figures that made the taxpayer-funded Medicaid program overpay for generic drugs.

Legal action began against Teva and two other pharmaceutical companies - Mylan Laboratories of Pennsylvania and Sandoz of New Jersey - three years ago.

Abbott alleges that hundreds of drugs covered by Medicaid were sold at substantial discounts to places like CVS, Wal-Mart and Walgreens, but that the pricing was being hidden from the Medicaid program

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