Wyoming Receives $700,000 Medicaid Fraud Lawsuit

Improper marketing campaign of the drug Seroquel nets the state $700k.
Improper marketing campaign of the drug Seroquel nets the state $700k.

Wyoming will receive a $703,000 Medicaid fraud settlement from AstraZeneca Pharmaceuticals for allegedly engaging in an off-label marketing campaign that improperly promoted its anti-psychotic drug, Seroquel. 

Wyoming Attorney General Bruce Salzburg announced Friday that the Wyoming Medicaid program will receive the money as part of a national Medicaid fraud settlement. AstraZeneca will pay a total of $520 million in damages and penalties to various states and the federal government for its conduct.

AstraZeneca promoted Seroquel for uses that were not approved by the U.S. Food and Drug Administration, including treating conditions such as aggression, Alzheimer’s disorder, anger management, anxiety, attention deficit hyperactivity disorder, dementia and sleeplessness. Seroquel is an anti-psychotic medication used to treat psychological disorders. 

Sixty-six percent of Wyoming’s $703,900 share will be returned to the federal government for its original contribution to Wyoming Medicaid funds.  The state will retain the remaining 34% of the settlement, which will be returned to the Medicaid budget.

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