Texas Attorney General’s Office Resolves Civil Medicaid Fraud Investigation into Taro Parmaceuticals

The Texas Attorney General’s Office resolved a civil Medicaid fraud investigation that earned the state $19.5 million.

Attorney General Greg Abbott secured an agreement with Taro Pharmaceuticals USA, Inc. which will resolve Texas’ civil Medicaid fraud investigation into their business activities. The investigation was the result of Taro fraudulently reporting inflated drug prices to the Medicaid program. The investigation uncovered that Taro, for 11 years, consistently broke state law by misreporting drug prices to the Medicaid program. As a result, some pharmacies were reimbursed more than necessary, wasting taxpayer money.

Under the settlement agreement Taro will pay a total of $8.75 million to the State’s general revenue fund. An undisclosed percentage of the $19.5 million settlement will be given to the federal government.

Since 2000, the Texas Attorney General’s Civil Medicaid Fraud team has investigated dozens of pharmaceutical manufacturers for reporting inflated drug prices to the Medicaid program.