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Press Release

Ranbaxy Pays $500 Million To Resolve Adulterated Drugs Claims

May 16, 2013

Attorney General Michael Geraghty announced today that Alaska joined with other states and the federal government in a $500 million dollar settlement to resolve civil and criminal allegations that Ranbaxy, a generic pharmaceutical manufacturer based in Gurgaon, India, introduced adulterated drugs into interstate commerce. As a result, false or fraudulent claims were submitted to Alaska's Medicaid Program.

The civil suit filed in the United States District Court for the District of Maryland under the federal False Claims Act 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 two separate facilities in Paonta Sahib and Dewas, India at various times between April 1, 2003 and September 16, 2010.

Ranbaxy agreed to pay the states and the federal government $350 million dollars in civil damages and penalties to resolve the civil allegations involving the two Indian manufacturing plants. Alaska recovered $376,793.64 for losses directly attributable to the Alaska Medicaid program. Ranbaxy USA pled guilty to seven felony counts alleging violations of the U.S. Food, Drug, and Cosmetic Act, and agreed to pay $150 million dollars in criminal fines and forfeitures. Also, Ranbaxy entered into a consent decree in January 2012 with the federal government to address outstanding current good manufacturing practice (cGMP) and data integrity issues in the two Indian manufacturing plants at issue. These provisions include a wide range of actions to correct its violations and to ensure that the violations do not occur again.

The State of Alaska Medicaid program has recovered over $2,309,000.00 in joint civil actions with the National Association of Medicaid Fraud Control Units since July 1, 2012. The Alaska Medicaid Fraud Control Unit (MFCU) is part of the Attorney General's Office. The MFCU is responsible for investigating and prosecuting Medicaid fraud and abuse, neglect or financial exploitations of patients in any facility that accepts Medicaid funds. Information about the MFCU or links for reporting Medicaid Fraud, abuse or neglect can be found on the MFCU website.

CONTACT: Assistant Attorney General Andrew Peterson at 907-269-6292 for more information about the Ranbaxy settlement or other Medicaid matters handled by the MFCU.

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