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Idaho Gets Piece of Settlement from Generic Drug Maker

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BOISE, Idaho (AP) — Idaho will receive nearly $420,000 as its share of a settlement with a pharmaceutical company over allegations that it sold 26 generic drugs whose strength, purity and/or quality fell below federal standards.

The lawsuits against India-based Ranbaxy alleged the products manufactured between April 2003 and September 2010 did not meet U.S. Food and Drug Administration standards and caused Medicaid to pay fraudulent claims. Attorney General Lawrence Wasden says about half of Idaho’s settlement money will go to Idaho Medicaid as restitution, while the rest will go to the state’s general fund.

Ranbaxy agreed to pay the states and federal government $350 million in civil damages and penalties, along with $150 million in criminal fines and forfeitures. Ranbaxy pleaded guilty to seven felony counts of violating the U.S. Food, Drug and Cosmetic Act.

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