Taro Pharmaceuticals resolves Medicaid fraud allegations with Texas AG

AUSTIN, Texas (Legal Newsline) – Texas Attorney General Greg Abbott reached a $19.5 million agreement on Monday with Taro Pharmaceuticals USA Inc. to resolve allegations of Medicaid fraud.

Taro allegedly engaged in the fraudulent reporting of inflated drug prices to the Medicaid program. The pharmaceutical company allegedly violated state law when it misreported the prices of multiple drugs to the Medicaid program over an 11-year period. The alleged misreporting caused Medicaid to reimburse pharmacies more than it should have for certain products.