Texas attorney general settles Medicaid drug suit

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.