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Drug companies to pay North Carolina $45M in settlement

RALEIGH, N.C. (AP) — North Carolina will receive $45 million in a settlement with drug makers Pfizer and Wyeth. Media outlets report that a group of states, including North Carolina, settled with the drug makers Wednesday on lawsuits alleging the companies owed millions in rebates to Medicaid for...

RALEIGH, N.C. (AP) — North Carolina will receive $45 million in a settlement with drug makers Pfizer and Wyeth.

Media outlets report that a group of states, including North Carolina, settled with the drug makers Wednesday on lawsuits alleging the companies owed millions in rebates to Medicaid for heartburn and acid reflux medications.

Altogether, the companies will pay $784.6 million to states and the federal government.

Drug makers are supposed to pay quarterly rebates to Medicaid based on the lowest prices they charge commercial customers. Wyeth, which is now a Pfizer subsidiary, was accused of failing to report discounted sales prices on various drugs from 2001 to 2006.

The settlement stems from two whistleblower lawsuits filed in the United States District Court for the District of Massachusetts.