New Jersey Pharmaceutical Company Settles Medicaid Fraud Allegations for $2M

Dey, a pharmaceutical company based in Basking Ridge, N.J., has agreed to pay $2 million to settle accusations of Medicaid fraud by the state of Wisconsin, according to a news release by Wisconsin Attorney General J.B. Van Hollen.

Dey is a pharmaceutical company that specializes in developing and manufacturing prescription drug products, such as EpiPen, EMSAM and Perforomist, for the treatment of respiratory disease, severe allergic reactions and psychiatric disorders.

Federal regulations place limits on the amount Wisconsin Medicaid can pay for reimbursement of prescription drugs. In order comply with those limits, Wisconsin estimates the acquisition cost providers pay to obtain prescription drugs that are later prescribed to Medicaid recipients. The state relies on average wholesale prices published by a pricing compendium, First DataBank. Wisconsin alleged Dey manufacturers reported inflated average wholesale prices to First DataBank in order to deceive the Medicaid pharmaceutical reimbursement program for increased sales and market share.

Read the AG's news release about Dey's settlement.

Read other coverage about pharmaceutical company settlements:

- Forest Pharmaceutical to Pay $313M to Settle Criminal and Civil Charges, Including Paying Kickbacks to Physicians

- Pharmaceutical Company to Pay $27M for Medicaid Fraud

- Pharmaceutical Company Teva Settles Drug-Pricing Lawsuits

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