The Justice Department is accusing drugmaker Wyeth of overcharging Medicaid hundreds of millions of dollars for drugs. The Justice Department and 16 states have joined in two whistle-blower lawsuits filed in federal court in Massachusetts.
The government says Wyeth offered steep discounts to thousands of hospitals for two versions of Protonix, a drug that suppresses stomach acid.
By law, manufacturers of brand-name drugs are required to offer the same rebates to state Medicaid programs that they provide to other customers. The government claims the maneuver helped the company avoid paying hundreds of millions of dollars in rebates to Medicaid.