AUSTIN—Texas Attorney General Greg Abbott has resolved an enforcement action against Ranbaxy, a generic drug manufacturer. The agreement resolves the State’s lawsuit under the Texas Medicaid Fraud Prevention Act (“TMFPA”) against Ranbaxy Pharmaceuticals, Inc., Ranbaxy Laboratories, Inc., Ranbaxy USA, Inc. and Ranbaxy, Inc. for fraudulently reporting inflated drug prices to the Medicaid program.
Under the settlement agreement, Ranbaxy must pay the State of Texas a total of $17.875 million for the State’s general revenue fund. Because the Medicaid program is jointly funded by the State and U.S. taxpayers, the federal government is entitled to a percentage of the settlement proceeds. The federal government’s share is also $17.875. Additionally, the Texas Attorney General’s Office will receive $4 million in attorneys’ fees and costs. The payments will be made in four installments, beginning this November and ending next year.