LANSING, Mich. (WLUC) - The state of Michigan will receive $14.5 million from Mallinckrodt after they allegedly underpaid Medicaid rebates for nearly seven years.
Michigan Attorney General Dana Nessel joined 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 (collectively 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, Michigan will receive $14,450,193.22, including the federal share—a portion of the recovery owed to the federal government commensurate with federal funding of the Medicaid program. The first payment – which is an estimated $180,000 for Michigan – is expected by mid-July.
Mallinckrodt’s U.S. headquarters is located in Bedminster, New Jersey. The settlement resolves allegations that from January 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 Michigan Medicaid False Claims Statute and resulted in the submission of false claims to the Michigan Medicaid program.
Under the Medicaid Drug Rebate Program, when a manufacturer...
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