Drug makers Pfizer and Wyeth will pay $784.6 million in a national settlement with states and the federal government over allegations that Wyeth underpaid Medicaid rebates. North Carolina will get $45 million, Attorney General Roy Cooper announced Wednesday.
Drug makers are supposed to pay quarterly rebates to Medicaid based on the lowest prices they charge commercial customers. Wyeth, which is now a Pfizer subsidiary, allegedly failed to report discounted sales prices for heartburn and acid reflux drugs from 2001 to 2006.
The settlement stems from two whistleblower lawsuits filed in the United States District Court for the District of Massachusetts.
North Carolina, 34 other states, the District of Columbia and the federal government intervened in the lawsuits.