Texas Inks $5M Deal With Drug Co. Over Medicaid Drug Prices

Law360, New York (September 4, 2013, 6:39 PM EDT) -- The state of Texas has reached a $5 million settlement with Harvard Drug Group LLC to resolve civil fraud claims arising from the company’s alleged misreporting of the price of generic drugs to the federal Medicaid program, Texas Attorney General Greg Abbott announced Wednesday.

The Texas enforcement action had accused Michigan-based Harvard Drug, which does business as Major Pharmaceuticals, of misreporting and, at times, inflating the drug prices to the Texas Vendor Drug Program, which processes prescription drug claims for Medicaid.

The plaintiffs also alleged that...
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