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Dey, Takeda settle suit with Alabama for combined $6.75 million


NAPA, Calif. Dey and Takeda Pharmaceuticals have settled lawsuits with the State of Alabama, who brought suits against them and other companies in January 2005 related to Medicaid reimbursements paid by the state to pharmacists and other health care providers.

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 in relation to drugs prescribed for pulmonary diseases and asthma. This settlement does not constitute an admission of guilt or 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.

The state’s claims against Takeda involved the diabetes drug Actos. Takeda has agreed to pay $2 million to the state.

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