The Texas Attorney General’s Office announced on Wednesday that Par Pharmaceuticals agreed to pay $154 million in order to resolve Medicaid fraud enforcement actions filed by Texas, Florida, Kentucky, South Carolina, and Alaska.  Ven-a-Care of the Florida Keys Inc., the whistleblower in the case, will receive a share of the recovery for uncovering Par’s conduct.

The Attorney General’s Office alleged that Par over-reported the prices it charged pharmacies, wholesalers, and distributors for prescription drugs in its filings with Medicaid.  Medicaid reimburses pharmacies based on the reported prices and so this resulted in significant overpayments.  This scheme has frequently been used by drug manufacturers to induce pharmacies to purchase their drugs.

In March 2011, a Texas district court entered into a $182 million judgment against two of Par’s co-defendants, Alpharma USPD and Purepac Pharmaceutical Corp., after a unanimous jury verdict.  Barr Pharmaceuticals settled a similar case last year and Watson/Schein Pharmaceuticals Inc. reportedly anticipates an imminent settlement.

Read the entire press release, Attorney General Abbott Recovers $24.4 Million For State of Texas