SACRAMENTO, Calif., Nov. 26, 2019 /PRNewswire/ — An important whistleblower lawsuit (Case No. D-1-GN-16-005758 (TX)) has resulted in a $63.5 million recovery for the state of Texas. The lawsuit was initially filed as a qui tam action on behalf of the relator, the whistleblower and alleged Lupin Limited and others violated the Texas Medicaid Fraud Prevention Act (TMFPA) in reporting inflated drug prices to the state’s Medicaid program. As part of the resolution, the relator will share in the recovery. Attorney Brooks Cutter, of Cutter Law P.C., acted as co-counsel on the whistleblower claim.
Following the filing of a qui tam lawsuit by the whistleblower, the Texas Attorney General’s Civil Medicaid Fraud team launched an investigation into Lupin Pharmaceuticals’ drug pricing. The investigation found that since 2005, Lupin illegally inflated prices reported to Medicaid as an inducement to pharmacies and other providers to purchase products from Lupin. That misrepresentation resulted in pharmacies receiving higher reimbursements from Medicaid for Lupin products than they should have.