Pfizer Puts FCA Case to Rest With $784.6M Payment

Pfizer will pay $784.6 million to settle Justice Department allegations that a subsidiary overcharged Medicaid under a tentative agreement announced last week.

As part of the deal, the company will pay the sum in exchange for federal authorities dropping an investigation into Wyeth’s billing practices. Pfizer acquired Wyeth in 2009.

Wyeth allegedly miscalculated Medicaid rebates for its gastroesophageal reflux disease drug Protonix between 2001 and 2006, in violation of the False Claims Act and other federal laws.