Attorney General Bill McCollum News Release
October 21, 2009
Media Contact: Jenn Meale
Phone: (850) 245-0150
en EspañolPrint Icon Print Version

Attorney General Recovers Over $7 Million for Florida from Pharmaceutical Companies

~ Settlement will send $101,000 to fund Medicaid Fraud Informant Reward Program ~


TALLAHASSEE, FL – Attorney General Bill McCollum today announced that Florida, along with several states and the federal government, has reached agreement with four pharmaceutical companies to resolve claims that they violated the False Claims Act by failing to pay appropriate rebates for drugs paid for by Medicaid. Florida will receive more than $7 million from settlements with AstraZeneca Pharmaceuticals LP, Ortho McNeil Pharmaceutical, Inc., Mylan Pharmaceuticals, Inc. and UDL Laboratories Inc. Over $101,000 will go to the state’s Medicaid Fraud Informant Reward Program.

These settlements resolve allegations that, between 1998 and 2005, AstraZeneca Pharmaceuticals LP, Ortho McNeil Pharmaceutical, Inc., Mylan Pharmaceuticals, Inc. and UDL Laboratories Inc. knowingly made false statements about several prescription medications, including Albuterol, Dermatop and Nifedipine. The misinformation triggered a substantial discount in the rebates the companies were required to pay to the Florida Medicaid program.

While participating in the Medicaid drug rebate program, companies are required to report their drugs as “innovators” or “non-innovators.” AstraZeneca, Ortho McNeil, Mylan and UDL Laboratories allegedly misrepresented their drugs as non-innovators so they could improperly receive a substantial discount in the rebate payments they were required to pay. Had these drugs been reported properly, the Florida Medicaid program would have received millions of dollars in additional rebate payments from these companies.

The settlement will ultimately send approximately $914,000 to the State’s General Revenue Fund. Nearly $2.2 million will be returned to the state's Medicaid program and the remainder will be returned to the federal Medicaid program for Florida. A team from the National Association of Medicaid Fraud Control Units participated in the investigation and conducted settlement negotiations with the defendants. Florida’s civil investigation was handled by the Attorney General’s Complex Civil Enforcement Bureau which is part of the Medicaid Fraud Control Unit.

The Medicaid Fraud Informant Reward Program is intended to financially reward informants who provide original information on Medicaid fraud violations that leads to the recovery of a fine, civil or criminal penalties, or forfeiture of property. The amount of the reward may be up to 25 percent of the amount recovered, or a maximum of $500,000 per case.


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