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Actavis to Settle with 84 Million Dollars after Cheating on the Prices of Generic Drugs

Actavis group is a drug manufacturing company, which has been in news for cheating with the consumers by increasing the price of the generic medications. This issue was taken over by the Texas officials.  The total defraud  was of total  $170.3 millions out of which is Actavis is supposed to pay $84 million  which is almost half of the total amount that the Travis County state jury had ordered Actavis to pay the state latest by February. Actavis had appealed that verdict, which followed a three-week trial.

Actavis, a privately-held Icelandic company, In announcing the accord with U.S. units Actavis Elizabeth LLC and Actavis Mid-Atlantic LLC, Texas Attorney General Greg Abbott said Actavis’ inaccurate price reporting caused the Medicaid program to overpay pharmacies for prescription drugs.

Actavis group did not own up the liability during the settlement,  both Actavis and Texas agreed to settle to avoid further litigation, according to the settlement agreement

Doug Boothe, chief executive of Actavis Inc, the direct parent of Actavis Elizabeth and Actavis Mid-Atlantic, called the settlement a “favorable outcome” that allows Texas’ Medicaid patients to continue using its drugs.

Actavis has offices in Reykjavik and in Zug, Switzerland. It also has U.S. operations in Morristown, New Jersey.

The company was taken private for $3 billion in 2007 by Novator Partners, an investment vehicle of Actavis’ chairman, the Icelandic businessman Bjorgolfur Thor Bjorgolfsson.

The case is Texas ex rel. Ven-A-Care of the Florida Keys Inc v. Alpharma USPD et al, District Court of Travis County, Texas, No. D-1-GV-08-001566.