Government Joins Whistleblower Suit Against Drugmaker

Posted on Jun 10, 2009

The federal Department of Justice and 16 states have joined a whistleblower lawsuit against the drug company, Wyeth, according to a report from bloomberg.com, "Wyeth Failed To Pay Medicaid Rebates." The Justice Department and the states claim that Wyeth failed to pay rebates to the Medicaid program, which is funded jointly by the federal government and each state government, for its Protonix Oral and Protonix IV drugs that suppress stomach acid. Medicaid is supposed to pay the same rates that private hospitals pay for the drugs and the suit claims that Wyeth hid those rates and failed to pay the required rebates. 

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