Delaware News

ATTORNEY GENERAL DANBERG ANNOUNCES AGREEMENT WITH KING PHARMACEUTICALS, INC.

Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Thursday, March 23, 2006



(Wilmington, DE): The Medicaid Control Unit of the Delaware Attorney General’s Office has reached an agreement with King Pharmaceuticals, Inc., a pharmaceutical company that incorrectly reported prices to the government for several of its drugs and, as a result, paid millions of dollars less in rebates to government entities, including state Medicaid programs. As a result, King Pharmaceuticals, Inc. will pay out $124 million in settlements with forty-nine states and the federal government.

King Pharmaceuticals, Inc., with its headquarters in Tennessee, is a manufacturer of generic drugs. It first entered into civil agreements to address allegations that, from 1994 through 2002, it had not accurately calculated drug prices reported to the federal government for the purposes of establishing rebates due to state Medicaid programs under the federal Medicaid drug rebate statute. As a result, Medicaid and other programs that were due rebates were underpaid some $62 million nationwide.

As part of the settlement, Delaware will recover $217,921.75 for the Delaware Medicaid Program; $122,586.37 of that amount will be paid directly to Delaware, with the balance going to the federal government to reimburse its share of the Medicaid costs.

The civil settlements with King Pharmaceuticals, Inc. further require the company to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services, in order to monitor the companys operations and ensure compliance with the law in the future.

The National Association of Medicaid Fraud Control Units state settlement team was led by the Directors of the Delaware, Florida and Missouri Medicaid Fraud Control Units and Assistant Attorneys General from Massachusetts and New York.

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ATTORNEY GENERAL DANBERG ANNOUNCES AGREEMENT WITH KING PHARMACEUTICALS, INC.

Criminal Division | Department of Justice | Department of Justice Press Releases | Date Posted: Thursday, March 23, 2006



(Wilmington, DE): The Medicaid Control Unit of the Delaware Attorney General’s Office has reached an agreement with King Pharmaceuticals, Inc., a pharmaceutical company that incorrectly reported prices to the government for several of its drugs and, as a result, paid millions of dollars less in rebates to government entities, including state Medicaid programs. As a result, King Pharmaceuticals, Inc. will pay out $124 million in settlements with forty-nine states and the federal government.

King Pharmaceuticals, Inc., with its headquarters in Tennessee, is a manufacturer of generic drugs. It first entered into civil agreements to address allegations that, from 1994 through 2002, it had not accurately calculated drug prices reported to the federal government for the purposes of establishing rebates due to state Medicaid programs under the federal Medicaid drug rebate statute. As a result, Medicaid and other programs that were due rebates were underpaid some $62 million nationwide.

As part of the settlement, Delaware will recover $217,921.75 for the Delaware Medicaid Program; $122,586.37 of that amount will be paid directly to Delaware, with the balance going to the federal government to reimburse its share of the Medicaid costs.

The civil settlements with King Pharmaceuticals, Inc. further require the company to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services, in order to monitor the companys operations and ensure compliance with the law in the future.

The National Association of Medicaid Fraud Control Units state settlement team was led by the Directors of the Delaware, Florida and Missouri Medicaid Fraud Control Units and Assistant Attorneys General from Massachusetts and New York.

###

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.