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Drug Company to Pay Maryland $6 Million for Medicaid Fraud

May 3rd, 2016 by WCBC Radio

Attorney General Brian E. Frosh announced today that Maryland will receive $6,030,828.60 pursuant to an agreement in principle to settle allegations against Wyeth, a wholly owned subsidiary of Pfizer, Inc. The settlement will resolve allegations that Wyeth knowingly underpaid rebates owed under the Medicaid Drug Rebate Program for the sales of Protonix Oral and Protonix IV between 2001 and 2006. Under the settlement, Wyeth agreed to pay $784.6 million collectively to the federal government and the states. The portion of Maryland’s recovery is shared with the federal government, which provides joint funding for the Medicaid program. 

“The Medicaid Drug Rebate Program is an important tool for controlling the high cost of prescription drugs,” said Attorney General Frosh. “This settlement reinforces every drug manufacturer’s duty to report honest and accurate information.”

The settlement stems from two whistleblower lawsuits, U.S., al., ex rel. Kieff v. Wyeth Pharmaceuticals, Inc., Civ. No. 03-cv-12366, and U.S., et al., ex rel. William St. John LaCorte v. Wyeth, Civ. No. 06-cv-11724  which were filed in the United States District Court for the District of Massachusetts.  Maryland, along with the United States, 34 other states, and the District of Columbia intervened in the lawsuits.


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