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Drug Makers To Pay $25.2M To Settle Fraud Claims

Louisiana AG James "Buddy" Caldwell says five companies will pay to resolve allegations they misreported pricing information to bilk the state's Medicaid program.

BATON ROUGE, La. (AP) — Louisiana Attorney General James "Buddy" Caldwell says five pharmaceutical companies have agreed to pay the state $25.2 million to resolve allegations they misreported drug pricing information to inflate reimbursement payments by the state's Medicaid program.

Actavis, Boehringer Ingelheim, Dey, GlaxoSmithKline and Schering-Plough are the companies involved in Tuesday's settlement announcement.

A Caldwell spokeswoman says the state health department will receive more than $20 million from the settlement and the attorney general's office will get nearly $5 million.

Caldwell's office has sued more than 100 drug manufacturers and their subsidiaries over alleged fraudulent pricing and marketing of prescription drugs.

A trial for some companies that haven't settled with Caldwell's office is scheduled for later this year.