In November 2023, the Office of the Attorney General’s Civil Medicaid Fraud Division sued Pfizer, Inc., Tris Pharma, Inc. and Tris CEO Ketan Mehta for defrauding the Texas Medicaid program by providing adulterated pharmaceutical drugs to Texas children in violation of the Texas Medicaid Fraud Prevention Act, now known as the Texas Health Care Program Fraud Prevention Act (“THFPA”).
Pfizer contracted with Tris, a drug manufacturer, to produce a pediatric attention-deficit/hyperactivity disorder medication (“ADHD”), Quillivant XR. Texas AG alleged that Pfizer knowingly distributed Quillivant to children on Medicaid despite the drug’s pattern of failing quality control tests due to flawed manufacturing practices. It was also alleged that Tris altered the drug’s testing method in violation of federal and state laws to ensure Quillivant passed regulatory hurdles and could continue to be sold. It was further alleged that despite knowing about these serious problems, Pfizer misrepresented to the Medicaid program that Quillivant was in compliance with federal and state law, and concealed from Medicaid decision-makers the fact that Quillivant was an adulterated drug. As a result of these misrepresentations and concealments, Pfizer and Tris obtained the benefit of taxpayer-funded Medicaid reimbursement for Quillivant.
Recently, the Texas AG secured a $41.5 million settlement with Pfizer and Tris Pharma for violation of THFPA.
