Indiana’s Medicaid program will receive more than $9 million as part of a settlement with drug manufacturer Wyeth Inc. Indiana was part of a 35-state, $785 million settlement with the company over charges of fraud relating to Medicaid rebates.
The whistleblower lawsuits originated in Louisiana and Massachusetts. They allege that between 2001-2006, Wyeth understated the amount of rebates it owed for multiple drugs. Wyeth is headquartered in Madison, New Jersey. It was acquired by New York-based Pfizer Inc. in 2009, after the alleged fraud had ended.While Wyeth is not admitting legal wrongdoing as part of the settlement, it is paying $784.6 million to resolve the lawsuits.
Attorney General Greg Zoeller says the settlement is "the culmination of nearly seven years of hard-fought litigation." In a release, he said, "When a business cheats Medicaid into paying more than should be paid for drugs, then my office will hold them accountable." Zoeller says the agreement marks the second-largest settlement of its type in recent years.