Abbott To Pay $28M To Settle Texas Medicaid Suit

Law360, New York (September 10, 2008, 12:00 AM EDT) -- Abbott Laboratories Inc. has reached a $28 million settlement with the state of Texas to resolve claims that the company reported inflated drug prices to state and federal Medicaid programs in order to curry favor with health care providers.

Texas Attorney General Greg Abbott said Tuesday that the state will receive $18 million in damages and $10 million in attorneys' fees and costs under the settlement, which was filed this week in Travis County District Court in Texas.

The suit alleged that the state Medicaid program...
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