Litigation > False Claims Act/Qui Tam Defense > State FCA Resource Center > Texas Settlements with Endo and Pfizer
23 Apr '13

On January 4, 2013, the Texas Attorney General announced settlements with Endo Pharmaceuticals and affiliates of Pfizer Inc., pursuant to which the drug manufacturers will pay a total of $50 million ($25 million each) to resolve two separate Texas Medicaid Fraud Prevention Act lawsuits brought by the State of Texas.  According to the Texas Attorney General, the lawsuits, which were filed under seal, alleged that Endo and Pfizer improperly reported inflated market prices for certain drugs in reports filed with the Medicaid program, allowing pharmacies to receive Medicaid reimbursements at vastly inflated rates. The Texas Attorney General alleged that Endo and Pfizer both used these illegally created “spreads” to unlawfully induce pharmacies and other providers to purchase their products. The sealed actions were initiated by Ven-A-Care of the Florida Keys Inc., which will receive a share of each recovery. The Texas Attorney General has reported that the State of Texas will retain $36.34 million of the $50 million. The Texas Attorney General’s press release can be found here.