The drug maker Mylan Inc. has agreed to settle a lawsuit brought against it by both the U.S. government and the State of Texas. The suit alleges that Mylan artificially inflated prescription drug prices, causing Medicaid to pay the company far more money than should have been reasonable. Mylan will pay $65 million under the terms of the settlement, while admitting no wrongdoing. Mylan is a generic-drug manufacturer located in Pittsburgh.
Mylan has been sued by several other states, and last year pharmaceutical companies Mylan, AstraZeneca, and Johnson & Johnson agreed to pay $124 million in settlement of claims that the companies violated the U.S. False Claims Act by underpaying Medicaid rebates.