State of Missouri v. King Pharmaceuticals Inc.

Attorney General Jay Nixon today presented the Missouri Department of Social Services with a check for the state's share of a $124 million nationwide settlement with a pharmaceutical company. The company, King Pharmaceuticals Inc., incorrectly reported prices for its generic drugs, resulting in the underpayment of rebates to the state Medicaid program.

Missouri's leadership role in the settlement resulted in $3,088,917 going back to taxpayers; $1,269,290 of that amount is reimbursing the Missouri Medicaid program and the Missouri Senior Rx program; the balance went to the federal government for its Medicaid costs. Nixon's office led negotiations for the 49 states, along with representatives from New York, Massachusetts, Delaware and Florida.

King Pharmaceuticals Inc. entered into civil agreements last November with Missouri and the other states and the U.S. Department of Justice to address allegations that King had not accurately calculated its prices in from 1994 to 2002.

"We'll work tirelessly to uncover fraud against the Missouri Medicaid program, as our track record of recovering more than $27 million for Missouri taxpayers last year demonstrates," Nixon said.

As a result of the incorrect price calculations, Medicaid and other programs that received rebates from King Pharmaceuticals for reimbursing providers for the drugs were underpaid some $62 million nationwide. The settlements included a double damages penalty, resulting in the total settlement of $124 million.

The civil settlements with King Pharmaceuticals require the company to enter into a Corporate Integrity Agreement with the Office of Inspector General, U.S. Department of Health and Human Services to ensure future compliance with the law.

Settled for $124 million.

Unknown

Unknown

None