Litigation > False Claims Act/Qui Tam Defense > State FCA Resource Center > Texas Settlement with Novartis
28 Mar '13

The Texas Attorney General announced a settlement with drug-maker Novartis Pharmaceuticals Corp. in which Novartis agreed to pay $19.9 million to resolve claims filed under the Texas Medicaid Fraud Prevention Act and other related Texas statutes. The payment will be allocated amongst the State of Texas, the federal government, and the relator (including payment of the relator’s attorneys’ fees and costs). The State of Texas will reportedly retain $6.6 million under the deal. According to the Texas Attorney General, the lawsuit involved allegations that Novartis improperly urged physicians to prescribe the drug Elidel to children under the age of two for unapproved purposes. The Attorney General’s press release describing the settlement can be found here.