West-Ward Pharmaceuticals to Pay $10M in Medicaid Fraud Case

Eatonton, N.J.-based West-Ward Pharmaceuticals has agreed to pay $10 million to resolve allegations the pharmaceutical company inflated prescription drug prices to overcharge Texas' Medicaid program.

The state of Texas alleged West-Ward had been inflating prices for several prescription drugs to the state's Medicaid program since 1995. The state further alleged as a result of the fraudulent pricing, the Texas Medicaid program reimbursed pharmacies inflated rates for the drugs, according to the settlement agreement.  

Under the agreement, West-Ward will pay $4.5 million to the state of Texas, and because Texas' Medicaid program is partially funded by U.S. taxpayers, West-Ward will pay $5.5 million to the federal government. 

Although West-Ward has entered into this agreement to settle the Medicaid fraud allegations, it has denied all of the allegations brought against it by the state of Texas, according to the settlement agreement. 

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