Dey settles Alabama Medicaid case

NAPA, Calif. Dey has settled a lawsuit that the State of Alabama brought against it and other companies in January 2005 related to Medicaid reimbursements paid by the state to pharmacists and other health care provider.

Dey has agreed to pay the state $4.75 million, $750,000 of which accounts for outside legal fees and expenses in exchange for a full release of claims. This settlement does not constitute an admission of guilt of liability by Dey.

As part of the agreement between Mylan, Dey’s parent company, and Merck, Dey’s former parent company, Merck has agreed to compensate Mylan in connection with the settlement and for all liability for all pending and future related Medicaid reimbursement lawsuits involving Dey.