For Immediate Release
May 13, 2013
Karin M. Eckel, Assistant Attorney General
Director of Medicaid Fraud
Deputy Attorney General Ann M. Rice announces that New Hampshire has joined with 31 other states and the federal government in a $500 million dollar settlement to resolve civil and criminal allegations that Ranbaxy, a generic pharmaceutical manufacturer, introduced adulterated drugs into interstate commerce. As a result, false or fraudulent claims were submitted to New Hampshire's Medicaid Program. As part of this national settlement, New Hampshire will receive over $317,000 in recoveries from Ranbaxy.
The federal and state complaints alleged that Ranbaxy knowingly manufactured, distributed and sold generic pharmaceutical products - whose strength, purity and/or quality fell below the standards required by the FDA. The products at issue consisted of 26 generic pharmaceutical products manufactured at its facilities in Paonta Sahib and Dewas, India, between April 1, 2003 and September, 16, 2010.
Ranbaxy will pay the states and the federal government $350 million dollars in civil damages and penalties to compensate Medicaid, which is funded jointly by the states and the federal government, and other federal health care programs affected by Ranbaxy's conduct. Additionally, Ranbaxy USA, a subsidiary, has pled guilty to seven (7) felony counts alleging violations of the U.S. Food, Drug, and Cosmetic Act, and will pay $150 million dollars in criminal fines and forfeitures.
A team from the National Association of Medicaid Fraud Control Units (NAMFCU) conducted the settlement negotiations with Ranbaxy on behalf of the states.
New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301