Attorney General Ken Paxton Recovers $25 Million in Medicaid Fraud Case

Texas’ general fund received more than $11 million after Attorney General Ken Paxton’s office concluded litigation against a New Jersey-based pharmaceutical company.

A $25 million settlement was reached with Glenmark Generics Inc. this week under the Texas Medicaid Fraud Prevention Act after an investigation, launched in 2012, revealed the company was reporting inflated drug prices since 2005.

The state’s general fund and the federal government will both receive $11.25 million and the Office of the Attorney General will receive $2.5 million to pay for legal fees.

Attorney General Paxton released a statement on the case that read:

“Identifying and preventing Medicaid fraud continues to be a top priority for the Office of the Attorney General. Thanks to our Civil Medicaid Fraud Division’s conscientious stewardship of the taxpayer-funded Medicaid program, Texas will receive an $11.25 million reimbursement from a New Jersey-based pharmaceutical manufacturer. The Office of the Attorney General will continue cracking down on waste, fraud and abuse in the Medicaid program.”

According to the Attorney General’s Office, total recoveries for the state and federal government through the Civil Medicaid Fraud Division have exceeded $1.5 billion since 2002.