New Mexico Attorney General Hector Balderas
From the Office of the Attorney General:
ALBUQUERQUE — Attorney General Hector Balderas announces that New Mexico has joined with 49 other states, Washington, D.C., Puerto Rico, and the federal government to settle allegations of fraud against Mallinckrodt ARD, LLC (formerly known as Questcor Pharmaceuticals, Inc.), a U.S. subsidiary of the Irish pharmaceutical company Mallinckrodt plc (Mallinckrodt), which sells and markets pharmaceutical products throughout the nation.
The total value of the settlement is $233,707,865.18, plus interest, to be paid over a period of seven years. Of this amount, New Mexico will receive $493,974.38 in restitution.
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, the New Mexico Medicaid False Claims Act, and the New Mexico Fraud Against Taxpayers Act, resulting in the submission of false claims to the New Mexico Medicaid program.
“Vulnerable New Mexicans are already struggling with unbearable prescription costs, and my office will enforce the rule of law against bad actors that cause harm to the State and its Medicaid members,” Attorney General Balderas said.
Under the Medicaid Drug Rebate Program, when a manufacturer increases the price of a drug faster than the rate of inflation, it...
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