Wyeth Settles Medicaid Rebate Cases for $785 Million

Pfizer subsidiary Wyeth has agreed to settle allegations that between 2001 and 2006 it knowingly underpaid rebates owed under the Medicaid Drug Rebate Program for the sales of Protonix oral and Protonix IV. Under the settlement, Wyeth will pay a total of $785 million to the federal government and individual states. The settlement stems from two whistleblower lawsuits, U.S., et al., ex rel. Kieff v. Wyeth Pharmaceuticals, Inc., and  U.S., et al., ex rel. William St. John LaCorte v. Wyeth, which were filed in Massachusetts federal court.

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