Attorney General's News Release

August 14, 2007

Nixon recovers $5.8 million for Missouri Medicaid in settlement with Purdue Pharma

Jefferson City, Mo. — Prescription drug manufacturer Purdue Pharma will pay $5,867,060 to the Missouri Medicaid program as part of a nationwide $634 million settlement, Attorney General Jay Nixon announced today. The settlement resolves claims that the company improperly marketed the pain medication OxyContin to health care providers with false claims.

Nixon said Missouri will receive $2,434,763 in the settlement, with $3,432,297 going to reimburse the federal government for its share of the state Medicaid funding.

“We will continue to aggressively prosecute the improper and illegal marketing of drugs by pharmaceutical companies,” Nixon said. “The cooperation of state and federal governments to investigate this case and force Purdue to account for its practices led to this important settlement.”

It was alleged that from 1995 through 2005, Purdue Pharma sales representatives illegally promoted OxyContin by falsely claiming that the neurotic pain medication was less addictive, less subject to abuse and diversion and less likely to cause tolerance and withdrawal than other pain medications. This inaccurate communication of information about OxyContin constituted a mislabeling and misbranding of the drug.

The investigation into Purdue Pharma’s practices took four years and involved the Western District of Virginia U.S. Attorney’s Office, in conjunction with other state and federal law enforcement agencies.

The Medicaid Fraud Control Unit of the Attorney General’s Office, established by Nixon in 1994, has authority under state law to investigate and prosecute, both civilly and criminally, allegations of fraud against Missouri’s Medicaid program.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818