Litigation > False Claims Act/Qui Tam Defense > State FCA Resource Center > $10.9 Million in “Illegal Spread” Settlements with Upsher-Smith and Inwood/Forest
16 May '13

On February 13, 2013, the Texas Attorney General announced settlements with Upsher-Smith Laboratories, Forest Laboratories, and Forest subsidiary Inwood Laboratories in connection with “illegal spread” investigations of the companies. The Texas Attorney General accused the drug manufacturers of violating the Texas Medicaid Fraud Prevention Act by reporting inflated market prices for their drugs to the state, allowing pharmacies to receive Medicaid reimbursements at the above-market rates, and using these “spreads” to induce pharmacies and other providers to purchase their products. Under the settlements, Upsher-Smith will pay $7.9 million and Inwood/Forest will pay $3 million, including a total of $1.1 million in attorneys’ fees. The Texas Attorney General’s press release can be found here.