April 26, 2007
California-based Dey, Inc., a manufacturer of generic pharmaceuticals, has paid the Commonwealth of Massachusetts $2.9 million to settle litigation pending in the Federal District Court in Boston. Massachusetts accused Dey of inflating the “wholesale acquisition cost” it reported to national price reporting services, causing the state to pay inflated amounts for Dey drugs dispensed by pharmacies to Medicaid recipients.
The settlement of the litigation (not a False Claims Act suit) was reported by the Massachusetts Attorney General on April 20, 2007.