Schering-Plough Corp., Kennilworth, N.J., announced it will pay the state of Texas $27 million to resolve allegations that the drugmaker elevated state Medicaid reimbursement for several of its asthma and respiratory drugs by reporting false prices.
The company disclosed the settlement -- which involves its Warrick Pharmaceuticals Corp. subsidiary -- in a Securities and Exchange Commission filing last week before all parties had signed off on it.
A spokeswoman subsequently said the disclosure was premature. The settlement stems from a whistleblower lawsuit filed by Ven-A-Care, a small pharmacy in the Florida Keys that has successfully sued a number of drug manufacturers over pricing schemes.
Attorneys general in several states have pursued lawsuits based on such charges.
The investigation was conducted by the Texas attorney general, HHS' inspector general's office and the U.S. Justice Department, which is investigating Warrick's drug pricing in other states.