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SALT LAKE CITY -- Utah's Attorney General's Office has recovered a $1 million settlement from a drug company that overcharged the state's Medicaid program.
Attorney General Mark Shurtleff says California-based Dey, L.P. falsely inflated its drug prices and then marketed its products as more profitable than others.
Utah is one of 26 states pursuing civil litigation against various drug companies. Dey is the first company sued by the state to finalize a settlement.
In a statement released Thursday, Assistant Attorney General Robert Steed said, "We hope the pharmaceutical industry will take notice and stop any practice that unfairly drives up health care costs. Dey was one of the smaller drug companies facing a Medicaid lawsuit from the Utah Attorney General's Office. We fully expect to bring a great deal more money back to Utah's Medicaid program."
The Utah Attorney General's Office is currently negotiating with other manufactures in hopes of reaching similar settlements.