Pharmaceutical companies pay $6.75M to settle state Medicaid fraud case

Two pharmaceutical companies will pay the state of Alabama $6.75 million to settle cases of fraudulently inflation of prescription drug prices to the state's Medicaid Agency.

Dey LP and Takeda Pharmaceuticals North America Inc. will pay the state $4.75 million and $2 million, respectively. In 2005, Alabama Attorney General Troy King filed a lawsuit alleging the two companies overcharged the Alabama Medicaid Agency, resulting in excessive payments to pharmacists and doctors. The suit involved Takeda's diabetes drug Actos and Dey's pulmonary and asthma drugs.

King's lawsuit is ongoing against 71 other defendants. Four defendants are scheduled to go to trial in February in Montgomery County Circuit Court.

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