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SACRAMENTO, Calif., — 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.
Named in the lawsuit were Lupin Limited, Lupin Inc. and Lupin Pharmaceuticals, Inc. Additionally, the company’s Chief Executive Officer Vinita Gupta and Executive Vice President, US Generics, Robert Hoffman were listed as plaintiffs.
As a result of the whistleblower lawsuit, Lupin will pay approximately $63.5 million to resolve the allegations. That amount will be divided between Texas and the federal Medicaid program. The Whistleblower will share in the recovery.
“This is an important result for fair and accurate drug pricing, achieved thanks to the efforts of the Texas Attorney General’s office and our team on behalf of the whistleblower,” Brooks Cutter said of the resolution.
About Cutter Law
Cutter Law P.C. is a California-based law firm that specializes in whistleblower, personal injury, product liability, insurance, and employment lawsuits in individual, group, and class action claims. We have successfully represented numerous whistleblower clients who have come forward with allegations of fraud and other wrongdoing. Our attorneys have been involved in litigation against medical device makers, insurance companies, social media companies, and many other organizations. For more information about Cutter Law or our attorneys or practice areas visit http://www.cutterlaw.com. For a free case evaluation, fill out our contact form or call 707-306-0540.