Watson Exits Medicaid Drug Inflation MDL For $79M

Law360, New York (September 16, 2011, 6:50 PM EDT) -- Watson Pharmaceuticals Inc. on Wednesday agreed to pay $79 million to settle part of a Massachusetts multidistrict litigation accusing it and other pharmaceutical companies of overcharging Medicaid by reporting inflated drug values.

The suits in the MDL, which dates back to 2001, accuse a number of drug industry giants of defrauding the U.S. and some state governments by reporting inflated values of a drug's average wholesale price, the basis for calculating Medicaid reimbursements.

Watson, its subsidiary Schein Pharmaceuticals Inc. and relator Ven-A-Care of the Florida Keys...
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