Rhode Island Reaches Settlement with Pharma Giant for Over $5 Million

  • Rhode Island will receive over $5 million in damages from Wyeth as part of a larger settlement with the federal government. Wyeth was purposefully underpaying rebates for their stomach acid reducing drugs to Medicaid over the course of five years, from 2001 to 2006. The scheme was widespread and was part of a comprehensive fraud that was settled with 34 states.

Maxim Health Services, Inc. Agrees to Pay $150 Million in Medicaid Fraud Investigation

  • Attorney General Peter F. Kilmartin announced that Rhode Island’s Medicaid program will receive $396,894 from Maxim Healthcare Services, Inc. as part of a $150 million settlement reached by the federal government and several states. The settlement resolves allegations that Maxim, a home health agency that provides in-home nursing services, submitted claims for services not rendered in forty-one states and that certain Maxim facilities were not properly licensed and were therefore ineligible to submit claims for reimbursement from Medicaid.

AG Kilmartin Announces a $40.1 Million Settlement with CareFusion Corporation to Resolve Fraud Allegations

  • Attorney General Peter F. Kilmartin announced that $59,000 will be returned to Rhode Island’s Medicaid budget by CareFusion, a medical device manufacturer, to resolve allegations that it defrauded the state’s Medicaid program by improperly promoting and marketing the surgical preparation solution Chlorapep and concealing kickbacks to doctors who promoted the drug. The recoveries for Rhode Island are part of a $40.1 million settlement between several states and the federal government.

Boehringer Ingelheim Pharmaceuticals, Inc. Pays $95 Million to Resolve Off-Label Marketing Allegations

  • Attorney General Peter F. Kilmartin announced that Rhode Island will receive $75,000 from Boehringer Ingelheim Pharmaceuticals, Inc. as part of a $95 million federal and multi-state settlement. The settlement resolves civil allegations that the company unlawfully marketed several drugs for uses not approved by the Food and Drug Administration, causing false claims to be submitted to government health care programs.

Attorney General Kilmartin Announces $40.75 Million Settlement with GlaxoSmithKline and SC Pharmco and 38 States in Substandard Manufacturing Investigation

  • Attorney General Peter F. Kilmartin announced that Rhode Island will receive $564,503 from GlaxoSmithKline and SB Pharmco Puerto Rico as part of a $40.75 million settlement multi-state settlement. The settlement resolves allegations that GSK and SB Pharmco engaged in unfair, deceptive, and substandard manufacturing practices with certain lots of Kytril, Bactroban, Paxil CR, and Avandamet.

Johnson &  Johnson and Janssen Pharmaceuticals, Inc. to Pay More Than $1.6 Billion to Resolve Healthcare Fraud Allegations

  • Attorney General Peter F. Kilmartin announced a settlement with Johnson & Johnson and its subsidiary, Janssen Pharmaceuticals, Inc., that resolves allegations of unlawful marketing practices in the promotion of two drugs, Risperdal and Invega. The companies allegedly promoted the drugs for uses not approved by the Food and Drug Administration. As a result, Johnson & Johnson agreed to pay the states involved in the lawsuit and the federal government $1.2 billion, with $5.6 million going to the state of Rhode Island’s Medicaid budget.