Texas OAG Reaches $42.7 Million Settlement over Alleged Medicaid Fraud

  • The Texas OAG settled with six subsidiaries of Takeda Pharmaceutical Co. to resolve allegations that the companies committed Medicaid fraud in violation of the Texas Medicaid Fraud Prevention Act (TMFPA).
  • According to the AG’s office, the settlement addresses alleged TMFPA violations raised by a whistleblower in a qui tam lawsuit. The lawsuit alleged that the companies provided nursing and reimbursement services for certain drugs to Texas Medicaid providers, and paid clinical nurse educators to refer or recommend the ADHD medication Vyvanse to providers.
  • The companies will pay $42.7 million to settle the allegations.