The attorney general of Wisconsin announced that the state will receive $7.75 million in a settlement with four drug manufacturers.  The companies, Boehringer Ingelheim Pharmaceuticals Inc., Boehringer Ingelheim Roxane Inc., Ben Venue Laboratories Inc. and Roxane Laboratories Inc., are all affiliates of German drug giant, Boehringer Ingelheim GmbH.

The lawsuit, filed in 2004, alleged that the companies defrauded Medicaid by reporting inflated prices for their drugs, so that Medicaid would reimburse pharmacies at a rate over and above what they were actually paying for the drugs.  The companies allegedly used this scheme as a marketing tool to encourage pharmacies to buy their medications. 

A total of 36 drug companies were named in the lawsuit.  Wisconsin has previously settled with Baxter Healthcare Corp. for $1.05 million, and with Amgen Inc. and Immunex for a total of $2 million.  A jury trial against drug manufacturer Pharmacia resulted in a verdict of $9 million in damages; after taking into account forfeitures, costs and fees, the court ordered Pharmacia to pay over $22 million.  The company’s appeal is pending.

Roxane Inc. also recently agreed to settle similar allegations with the state of Missouri for $3.1 million, although it denied wrongdoing.

Click here to read the full article, “Drug companies agree to $7.75 million settlement with state”

Click here to read the full article about Roxane Inc.’s settlement with Missouri, “Drug company to pay $3.1 million in Medicaid settlement”