India-based drugmaker to pay Idaho $420,000 in legal settlement

newsroom@idahostatesman.comJuly 8, 2013 

The pharmaceutical manufacturer Ranbaxy, based in India, will pay Idaho nearly $420,000 to settle civil and criminal allegations, Idaho Attorney General Lawrence Wasden said Monday.

The federal government and states including Idaho accused Ranbaxy of knowingly making, distributing and selling 26 generic drugs whose strength, purity and/or quality was below Food and Drug Administration standards. The drugs were made at Ranbaxy's factories in Aponte Sahib and Dews, India, between April 1, 2003, and Sept. 16, 2010.

Idaho alleged the adulterated drugs resulted in Idaho Medicaid paying false or fraudulent claims.

The company agreed to a $500 million settlement with the federal and state governments. About $266.7 million of that will go to Medicaid programs that are jointly funded by federal and state taxes.

"Taxpayers expect their tax dollars to be used to pay for a legitimate service," Wasden said in a press release. "This settlement reflects our resolve to address losses to the Idaho Medicaid program caused by individuals and companies."

Idaho's share of the settlement is $419,914. About half of that will go to Idaho Medicaid as restitution, and about half will go to Idaho's general fund.

The company also pleaded guilty to seven felony counts of violating the U.S. Food, Drug and Cosmetic Act and agreed to pay $150 million in criminal fines and forfeitures.

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