Bankrupt K-V Settles Texas Medicaid Fraud Suit For $3M Claim

Law360, Chicago (May 29, 2013, 4:44 PM ET) -- K-V Pharmaceutical Co. has agreed to hand Texas a $3 million unsecured claim in its bankruptcy to settle a whistleblower suit alleging the company made false claims to the state’s Medicaid program, according to court documents filed Tuesday.

In a motion to approve the settlement filed in New York bankruptcy court, K-V said it still disputes the state’s allegations, but that the deal was in the best interests of its creditors, considering Texas was asserting claims worth potentially tens of millions of dollars.

“[T]he debtors have...
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