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Pharmaceutical

Par Pharmaceutical to pay $72 million to settle Medicaid allegations

August 25, 2011
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AUSTIN, Texas — Texas Attorney General Greg Abbott announced Wednesday that New Jersey-based Par Pharmaceutical agreed to pay $72 million to settle a lawsuit accusing the drugmaker of defrauding Medicaid programs in Texas and four other states by improperly inflating drug costs, The Statesman reported.

Par Pharmaceutical was one of several drug companies accused of scheming to increase sales by reporting inflated drug prices to the state Medicaid program.Pharmacies and wholesalers that purchased the drugs could then bill Texas for the inflated price.

The lawsuit also alleged kickbacks, rebates and false price markups from the drugmakers.

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