AstraZeneca Settles Texas Medicaid Suits for $110 Million
Texas attorney general Ken Paxton says that AstraZeneca has agreed to pay the state $110 million to settle suits alleging that the company falsely and misleadingly marketed Seroquel and Crestor in violation of the Texas Medicaid Fraud Prevention Act. In a statement, Paxton says the company was accused of engaging in false and misleading marketing schemes at a time when it was under the strict obligations of a 2010 federal corporate integrity agreement resulting from prior allegations of Medicaid fraud. Although that agreement prohibited AstraZeneca from promoting Seroquel and Crestor for uses not approved by FDA, Paxton says, the company continued its off-label marketing.
The company was accused of marketing Seroquel to Medicaid providers who primarily treat children and adolescents when the drug was not approved as safe and effective for that population. Paxton’s office accused AstraZeneca of making hundreds of thousands of dollars in illegal payment to two former state hospital doctors to unduly influence the use of Seroquel in the state hospital system.
The company was also accused of a similar nationwide marketing fraud scheme involving Crestor, including allegations that it executed a plan of deception targeted directly at Texas Medicaid to expand the use of the statin beyond what the science supported, while downplaying a significant risk of diabetes in certain patients.