Office of the Attorney General
Attorney General Conway Announces $1.75 Million Settlement With Forest Pharmaceuticals Inc.

Press Release Date:  Friday, May 11, 2012  
Contact Information:  Shelley Catharine Johnson
Deputy Communications Director
502-696-5659 (office)

Attorney General Jack Conway today announced that he has recovered another $1.75 million on behalf of the Kentucky Medicaid program as the result of a settlement with Forest Pharmaceuticals Inc. This is the latest in a number of settlements in so-called Average Wholesale Price (AWP) lawsuits filed by the Office of the Attorney General against 47 of the largest pharmaceutical companies in the country.

The lawsuits filed by the Attorney General allege that Forest and the other defendant drug companies published false, inflated and deceptive AWPs for their drugs, which did not bear any relationship to the real prices that they actually charged their customers.  The Kentucky Medicaid program relied on these published AWPs to calculate Medicaid drug reimbursement rates.  The artificial “spread” between the false and inflated published prices and the real prices caused the Kentucky Medicaid program to pay millions of dollars more in drug reimbursements than it should have. 

“Kentucky taxpayers should not have to foot the bill for inflated drug prices,” General Conway said. “I am pleased that we were able to recover this money for a vital state program and for taxpayers.”

Forest manufactures brand drugs including Celexa, a popular drug used to treat depression, Lexapro (depression and generalized anxiety disorder), and Levothroid (hypothyroidism), as well as numerous other drug products.

Since Attorney General Conway took office in January 2008, his Office of Medicaid Fraud and Abuse Control has recovered or been awarded more than $230 million for the state and federal Medicaid programs. These cases range from lawsuits and settlements against pharmaceutical companies to cases against individual providers.

The Attorney General’s Tip Line for reporting allegations of Medicaid fraud is 1-877-228-7384.