Texas Attorney General Ken Paxton announced a landmark $41.5 million settlement with pharmaceutical giants Pfizer and Tris Pharma on Wednesday. The resolution stems from allegations of drug adulteration and fraudulent practices involving the state’s Medicaid program. The case, initiated in 2023, accused the companies of manipulating quality control tests for Quillivant XR, a medication prescribed for Attention Deficit Hyperactivity Disorder (ADHD).
Between 2012 and 2018, tests revealed that Quillivant XR frequently failed to dissolve properly in the body, rendering it ineffective. Paxton emphasized that the companies knowingly provided adulterated drugs to children and falsified test results to secure Medicaid reimbursements. ‘Under my watch, Big Pharma will not escape justice for lying about the effectiveness of its drugs,’ Paxton declared in a statement.
Pfizer, headquartered in New York, denied any liability or wrongdoing in the settlement. The company asserted that no safety concerns were identified for patients using Quillivant XR and reiterated its commitment to product quality and patient well-being. Tris Pharma, based in New Jersey, did not respond to requests for comment.
The lawsuit was sparked by a whistleblower complaint from Tarik Ahmed, Tris Pharma’s former technology chief, who served from 2013 to 2017. Quillivant XR was originally developed by NextWave Pharmaceuticals, which Pfizer acquired in 2012. Tris Pharma manufactured the drug on Pfizer’s behalf until 2018, when it acquired the product line. Pfizer confirmed it ceased marketing the drug in 2018.
This settlement underscores the ongoing scrutiny of pharmaceutical practices and the enforcement of accountability in public health programs.