AstraZeneca LP and Cephalon, Inc. agreed to pay $54 million to settle government charges they violated federal and state False Claims Acts by overcharging state Medicaid programs for their pharmaceutical products. AstraZeneca will pay $46.5 million and Cephalon, the wholly-owned subsidiary of Teva Pharmaceutical Industries. Ltd., will pay $7.5 million. According to the government, the two pharmaceutical companies underpaid drug rebates owed the states under the Medicaid Drug Rebate Program, which requires drug makers to periodically return to the government a portion of their Medicaid proceeds. The allegations first arose in a whistleblower lawsuit filed by Virginia pharmacist and attorney Ronald Streck under thequit tam provisions of the Federal False Claims Act, New York False Claims Act and other state false claims statutes. Mr. Streck will receive a yet-to-be-disclosed whistleblower award from a portion of the government’s recoveries. Whistleblower Insider
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