September 16, 2008
Texas Attorney General Greg Abbott announced a $28 million civil settlement with Abbott Laboratories Inc.
The settlement resolves the state’s claims that the drug manufacturer falsely reported drug prices to the state and federal Medicaid programs. Under state and federal law drug manufacturers are required to report the prices at which they sell their products to various providers, including pharmacies, wholesalers and distributors. When a manufacturer reports inflated prices to the Medicaid program, as happened in this case, the taxpayer-funded program vastly overpays providers for their products.