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Alabama Medicaid

Napa, CA: (Jan-09-08) The State of Alabama brought charges against Dey, LP, alleging that the company dealt fraudulently in January 2005 pertaining to Medicaid reimbursements paid by the state to pharmacists and other healthcare providers. Sources close to the case stated that as part of a settlement reached, the company agreed to pay the $4.75 million to resolve allegations. Company officials said that $750,000 of the $4.75 million accounts for outside legal fees and expenses.

Additionally, as part of the acquisition agreement between Mylan Inc. (Dey's parent company) and Merck KGaA (Dey's former parent company), Merck has agreed to indemnify Mylan in connection with this settlement and for all liability for all pending and future related Medicaid reimbursement lawsuits involving Dey. As part of the settlement, the state acknowledges that the settlement does not constitute admission or evidence of fault, liability or unlawful conduct by Dey, and that the settlement was reached to avoid the risks and costs associated with protracted litigation. [FOX BUSINESS: DEY MEDICAID]

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Published on Jan-10-08


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