Pharmaceutical Companies Settle Medicaid Fraud Claims For $36 Million

On January 4, 2013, the Attorney General for Texas, Greg Abbott, announced that Pfizer, Inc. and Endo Pharmaceuticals will pay $36 million to settle a whistleblower suit filed under Texas’ Medicaid Fraud Prevention Act.  The settlement resolves allegations that the companies defrauded Medicaid by misreporting the price of generic drugs for the Medicaid program.  Federal and state law requires drug manufacturers to file reports with Medicaid disclosing the prices that they charge pharmacies, wholesalers, and distributors for their products.  The improper price reporting for Pfizer and Endo was initially identified by Ven-A-Care of Florida Keys, Inc., which is entitled to share in the recovery.

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