AG Caldwell Recovers $8.5 Million During Fraud Trial Of Drug Company

LAStateSealBaton Rouge—Today Watson Pharmaceuticals Inc. agreed to pay Louisiana $8.5 million to resolve the fraudulent drug pricing claims against them. The agreement was announced in the 19th Judicial District Court before Judge Wilson Fields, just as Louisiana was about to give its opening statement to the jury panel of twelve men and women.

Attorney General Buddy Caldwell, who personally selected the jurors in this case, said, “We are prepared to present these fraud cases to Louisiana juries. Louisiana will not tolerate fraud being perpetrated on its Medicaid program.”

Caldwell added, “We have numerous other fraud cases currently pending against other pharmaceutical companies, and we are proceeding to recover funds wrongfully taken from this state.”

“The Attorney General’s Office has been an invaluable partner in fighting Medicaid fraud,” said Department of Health and Hospitals Chief Compliance Officer William Root. “Inflating the costs of prescription medications for Medicaid patients is wrong, plain and simple. I am confident our partnership with the Medicaid Fraud Control Unit is essential to protecting how and when we spend Louisiana tax dollars to care for those who need it most.”

This litigation case number is 596164 and is being handled jointly by outside contract counsel along with Louisiana Department of Justice in-house assistant attorneys general.  The suit accused Watson Pharmaceutical of committing fraud upon the Louisiana Medicaid program, violating the Louisiana Unfair Trade Practices and Consumer Protection Act and Louisiana’s Medical Assistance Programs Integrity Law.

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