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January 10, 2019


Settlement Stems from Attorney General's Suit Alleging Drug Makers Fraudulently Inflated Prices for Prescription Medications, Causing Inflated Medicaid Costs

Chicago — Attorney General Lisa Madigan today announced she has recovered $135 million for the state of Illinois in a settlement with Teva Pharmaceuticals USA Inc. that resolves allegations the drug company inflated the wholesale prices used in setting the rates for Medicaid reimbursements.

The settlement stems from a 2005 lawsuit filed by Madigan against 47 drug makers, including Teva Pharmaceuticals, for deceptive practices related to the Average Wholesale Price (AWP) of numerous prescription drugs. Madigan’s lawsuit alleged the drug makers fraudulently published inflated Average Wholesale Prices, which Medicaid programs used to determine the reimbursement amounts for drugs prescribed to Medicaid patients. Madigan alleged the inflated prices have resulted in the overpayment of drug costs by the state.

“I am pleased that today’s settlement will provide $135 million for the state,” Madigan said. “In total, as a result of my 2005 lawsuit, my office has recovered more than $436 million for the state of Illinois from drug companies that engaged in unfair conduct.”

Madigan’s lawsuit continues to be litigated against nine remaining manufacturers.


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