Actavis to Pay $170M for Reporting False Prices to Medicaid

Actavis Mid-Atlantic, a pharmaceutical company based in Morristown, N.J., must pay the state of Texas $170 million after a jury found the company guilty of falsely reporting its drug prices to the state Medicaid program, according to a news release from the Texas Attorney General's Office.

In order for pharmaceutical products to be eligible for reimbursement from Medicaid, Texas law requires that manufacturers accurately report market prices to Medicaid. The Medicaid program then uses this drug-pricing information to determine the rates at which pharmacies are reimbursed for products.

The state's legal action against Actavis stems from a whistleblower lawsuit that was filed under seal by a Florida-based pharmacy, Ven-a-Care. The pharmacy pursued their claim after discovering Actavis reported artificially inflated prices to Medicaid for its drugs. The case against Actavis is the first to go to trial.

Read the news release about Actavis' verdict.

Read other coverage about pharmaceutical fraud:

- Pharmaceutical Company Will Pay $280M to Settle False Claims Allegations

- Irish Pharmaceutical Company and U.S. Subsidiary to Pay $203M for Off-Label Marketing

- Kos Pharmaceuticals Will Pay $41M to Settle Kickback, Off-Label Promotion Allegations

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