Carson City, NV — Today, Attorney General Aaron Ford announced a $233.7 million settlement with Mallinckrodt ARD, LLC (formerly known as Questcor Pharmaceuticals, Inc.), a U.S. subsidiary of the Irish pharmaceutical company Mallinckrodt plc (collectively Mallinckrodt).
The settlement, joined by all 50 states, Washington, D.C., Puerto Rico and the federal government, will be paid over a period of seven years. In total, Nevada will receive $1,703,095 from the settlement.
“My office will not stop going after those who would seek to defraud our state and our healthcare and Medicaid system,” said AG Ford. “I would like to thank the office’s Medicaid Fraud Control Unit for the vital work they do – this is just the latest win they have delivered for the state of Nevada.”
The settlement resolves allegations that from Jan. 1, 2013, through June 30, 2020, Mallinckrodt knowingly underpaid Medicaid rebates due for its drug H.P. Acthar Gel (Acthar). The government alleges that Mallinckrodt’s conduct violated the Federal False Claims Act and the Nevada False Claims Act and resulted in the submission of false claims to the Nevada Medicaid program.
Under the Medicaid Drug Rebate Program, when a manufacturer increases the price of a drug faster than the rate of inflation, it must pay the Medicaid program a per-unit rebate of the difference between the drug’s current price and the price of the drug if it had gone up at the general rate of inflation since either 1990 or the year the drug...
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