TexTexas Drug Maker Ordered to Pay $170 Million for Fraud Against Medicare

On February 1, 2011, a jury in Travis County, Texas, returned a verdict against drug manufacturer Actavis Mid-Atlantic, LLC, based on allegations that it misrepresented drug prices to the federally-funded Medicaid program. The jury’s finding determined that Actavis and its co-defendant, Actavis Elizabeth, LLC, should pay the state of Texas and the federal government $170.3 million for its fraud against Medicaid. This verdict stemmed from a whistleblower lawsuit filed under seal by a small pharmacy based on Florida called Ven-a-Care. The owners of the pharmacy pursued their claim after learning that Actavis had inflated drug prices to Medicare. The result follows investigations over the last ten years by the Texas Attorney General’s Civil Medicaid Fraud team regarding prices set by pharmaceutical manufacturers. “Today’s verdict makes clear that the Texas Attorney General’s Office will hold Medicaid providers accountable for defrauding the taxpayers. I am grateful to the trial team for their hard work on this complex case,” commented Texas Attorney General, Greg Abbot. The Texas Attorney General’s office has investigated several fraudulent drug pricing cases and has recovered hundreds of millions of dollars through pre-litigation settlements. These recoveries include settlements against Teva Pharmaceuticals, Inc. in July 2010 for $51 million, as well as against Bristol Meyers Squibb in July 2008 for $37.4 million.

For more information see:  https://www.oag.state.tx.us/oagNews/release.php?id=3624

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