April 12, 2005
The Florida Attorney General has sued three pharmaceutical manufacturers for wrongfully inflating the prices charged to Florida’s Medicaid program, resulting in a loss to the state’s taxpayers of approximately $25 million.
The three companies – Sandoz, Inc., Ivax Pharmaceuticals, Inc., and Purepac Pharmaceutical Company, along with various parent and subsidiary companies – were sued for violations of the Florida False Claims Act and common law fraud. The lawsuit alleges that the companies overstated the prices of generic drugs to gain higher reimbursements than were justified.
The AG Office’s press release is available at their site.