AG Paxton Recovers $63.5 Million for State of Texas, U.S. Medicaid Program

AUSTIN – Texas Attorney General Ken Paxton today resolved an enforcement action against pharmaceutical product manufacturer Lupin Limited, Lupin Inc. and Lupin Pharmaceuticals, Inc., and its Chief Executive Officer Vinita Gupta and Executive Vice President, US Generics Robert Hoffman. The agreement resolves the state’s lawsuit under the Texas Medicaid Fraud Prevention Act (TMFPA) against Lupin for reporting inflated drug prices to the Medicaid program. Under the agreement, Lupin will pay more than $63 million to Texas and the federal government to resolve the claims against it.

“Identifying and preventing Medicaid fraud

continues to be a top priority for the Office of Attorney General. Thanks to our Civil Medicaid Fraud Division’s conscientious stewardship, we have once again protected taxpayers and the healthcare of vulnerable Texans by defending the Medicaid program,” said Attorney General Paxton. “I would also like to express appreciation for the close support, assistance and cooperation of the Texas Health and Human Services Commission – which runs the State’s Medicaid program – for helping our office achieve this result. We will continue cracking down on waste, fraud, and abuse to protect Texans and this program.”

Since 2000, the Texas Attorney General’s Civil Medicaid Fraud team has investigated dozens of pharmaceutical manufacturers for reporting inflated drug prices to the Medicaid program. In connection with a whistleblower lawsuit filed by Express Med Pharmaceuticals, Inc., the State launched an investigation against Lupin for possible violations of the TMFPA. The State’s investigation found that since 2005, Lupin violated Texas law when it illegally misreported prices to Medicaid in order to induce pharmacies and other providers to purchase Lupin’s products over its competitors’ products. As a result, Medicaid reimbursed pharmacies far more than it should have for certain products.

Since 2002, the Civil Medicaid Fraud Division’s recoveries in price reporting cases surpassed the $900 million mark, while total recoveries for the state and federal governments in suits filed under the TMFPA now exceed $2 billion.

To obtain more information about the Office of the Attorney General’s efforts to fight Medicaid fraud, access the agency’s website at www.texasattorneygeneral.gov.

To view a copy of the agreement, click here.