Paxton Secures $34 Million Settlement with AstraZeneca

AUSTIN, TX -- Attorney General Ken Paxton secured a settlement with AstraZeneca Pharmaceuticals LP (“AstraZeneca”) to resolve claims that the company engaged in an illegal kickback scheme that improperly influenced prescriptions paid for by Texas Medicaid. Under the settlement, the company will pay $33,998,000.00 to the State.

Attorney General Paxton sued AstraZeneca under the Texas Health Care Program Fraud Prevention Act (“THFPA”). Texas’s lawsuit alleged that AstraZeneca provided free nursing services and reimbursement support to prescribers and paid third-parties to deploy nurses and other healthcare professionals to recommend AstraZeneca drugs to medical providers under the guise of non-branded counseling. These inducements were designed to steer providers toward prescribing AstraZeneca’s drugs. In many cases, these prescriptions were covered by Medicaid, resulting in millions of dollars in claims to Texas Medicaid that were tainted by AstraZeneca’s illegal inducements.

Now, under the settlement, AstraZeneca will pay $33,998,000 to resolve the State's claims and repay Texans for the abuse of taxpayer dollars.

“I will not allow Big Pharma to misuse taxpayer dollars to put profit ahead of Texans’ health,” said Attorney General Paxton. “My office will continue aggressively pursuing healthcare fraud to protect taxpayer dollars and the integrity of our healthcare system.”

This settlement builds upon Attorney General Paxton's ongoing efforts to combat Medicaid fraud and protect Texas taxpayers. The OAG has also taken legal action against Eli Lilly, Sanofi-Aventis, and other major pharmaceutical companies to hold drug manufacturers accountable for fraud and abuse.

To read the settlement, click here.