AG Sues Two Drug Companies, Alleging Medicaid Fraud

Missouri's attorney general has sued two drug companies, accusing them of carrying out price-inflation schemes that cost Missouri's Medicaid program at least $15 million over the past 11 years. In a lawsuit filed in St. Louis city court, Jay Nixon alleged that Dey and rival Warrick Pharmaceuticals plotted to inflate reported prices for Medicaid reimbursement. The lawsuit seeks triple damages, allowable under the Missouri Health Care Payment Fraud and Abuse Act. Nixon also wants a court order that the companies refrain from further alleged infractions.
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