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Commonwealth of Virginia
Office of the Attorney General

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For media inquiries only, contact:  Brian J. Gottstein
Email: bgottstein@oag.state.va.us (best contact method)
Phone: 804-786-5874

 

Attorney general returns another $8.6 million in Medicaid fraud recovery to General Fund

RICHMOND (August 28, 2012) -- Attorney General Ken Cuccinelli announced to state legislators today that Virginia's Medicaid Fraud Control Unit will turn over a check to the General Fund later this month for $8.6 million, which represents Virginia's share of proceeds from a global settlement between pharmaceutical company GlaxoSmithKline (GSK) and Virginia, the United States, and other state governments to settle allegations of Medicaid fraud.

The investigation conducted by Virginia, the federal government, and the other states alleged that GSK violated federal and state laws by

Virginia, the states, and the federal government alleged that these actions caused false claims for reimbursement to be submitted to government health care programs, including Medicaid.
           
"When companies defraud Medicaid to enrich their own pockets, they are not only defrauding Virginia's taxpayers, but because annual Medicaid dollars are limited, they are potentially depriving health care from the poorest citizens of the commonwealth," said Cuccinelli.

The global settlement with GSK resolves civil fraud claims arising from four qui tam ("whistleblower") cases filed under the federal False Claims Act and the Virginia Fraud Against Taxpayers Act. 

The settlement agreement was reached in June 2012 and made public in July.  The settlement check in the amount of $8,600,723.17 will be deposited into the General Fund's Healthcare Account for use by the Virginia Department of Medical Assistance Services for Virginia's Medicaid program.

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A copy of this news release may be found on the attorney general's web site here.

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