December 28, 2011 at 7:53 PM CST - Updated June 26 at 4:54 AM
AUSTIN, Texas (AP) — Texas has reached an $84 million settlement with Actavis Inc., the prescription drug maker convicted of inflating drug prices to the Medicaid program.
State Attorney General Greg Abbott says the agreement averts lengthy appeals after a Travis County jury verdict in February. Prosecutors argued Actavis inaccurately reported its prices, leading Medicaid to overpay pharmacies.
CEO Doug Boothe said Wednesday his New Jersey-based company was pleased to resolve the case and would continue to report prices legally and under terms of the agreement.
The lawsuit followed a whistleblower suit filed more than 10 years ago by a small pharmacy in Florida and was the only one of several similar cases to reach a jury.
About $30 million of the settlement gets returned to the Texas treasury after legal fees and federal reimbursements.