Greg Abbott, Texas Attorney General, announced that Fougera Pharmaceuticals, Inc., a New York-based subsidiary of Sandoz Inc., fraudulently reported inflated drug prices to the Medicaid program and will now have to pay up.
Under the settlement agreement, Fougera will pay the state and the federal government a total of $22.75 million. More than $10 million of the $22.75 million total will be paid to the state of Texas. Because the Medicaid program is jointly funded by the State and U.S. taxpayers, the federal government is entitled to a percentage of the settlement proceeds.
Attorney General Abbott determined that Fougera had misreported the prices of various drugs to the Medicaid program over a period of several years. Medicaid, in turn, was overcharged for some of the companies’ products.
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