Pharmaceutical firm to pay $2.9 million in fraud settlement

US Pharmaceutical company Dey Incorporated will pay nearly three (m) million dollars to settle a lawsuit alleging the firm defrauded Missouri’s Medicaid program.

The settlement was filed today in St. Louis Circuit Court by Missouri Attorney General Jay Nixon.

Under the agreement, Napa, California-based Dey will pay more than two-point-seven (m) million dollars to Missouri’s Medicaid Fraud Reimbursement Fund and 200-thousand dollars to a fund used for consumer protection litigation and education.

Nixon’s lawsuit filed in May accused Dey and rival Warrick Pharmaceuticals Corporation of plotting to inflate reported prices for Medicaid reimbursement. The case against Warrick is still pending.

Dey denies wrongdoing but says the Medicaid system is seriously flawed.