Texas Attorney General Greg Abbott Announces Recovery of $10.9 Million in Medicaid Fraud Cases

Texas Attorney General Greg Abbott has announced the recovery of nearly $11 million for the State of Texas.

Abbott announced the resolution of two civil Medicaid fraud investigations that will yield $10.9 million.

The State charged Upsher-Smith Laboratories and Forest Laboratories with reporting fraudulently inflated drug prices to the Medicaid program.

Upsher-Smith Laboratories of New Jersey will pay the State of Texas $7.9 million, and Forest Laboratories and its subsidiary, Inwood Laboratories of New York, must pay the state $3 million under the settlement agreements.

The recovery for the State includes $1.1 million in attorney’s fees, as part of the overall $10.9 million.

Drug manufacturers must file reports with the Medicaid program that disclose the prices they charge pharmacies, wholesalers, and distributors for their products.

The Civil Medicaid Fraud Division’s recoveries for Texas passed the $400 million mark since 2002, and total recoveries for the state and federal governments now exceed $1 billion.