TALLAHASSEE, FLORIDA (BNO NEWS) – Florida will receive $6.5 million from a settlement with Dey L.P. and Dey Inc., to resolve a Medicaid fraud lawsuit over allegations of drug price manipulation, prosecutors announced on Tuesday.

“This settlement means money will be coming back into the state’s coffers instead of into the pockets of those perpetuating Medicaid fraud,” the Florida Attorney General said.

The lawsuit claimed that Dey set and reported inflated prices for Albuterol inhalants, solutions, and other related products dispensed by pharmacies and other providers. The Florida Medicaid Program reimbursed the inflated prices, causing the program to overpay millions of dollars. The reimbursement rates are based upon the prices reported by drug manufacturers.

From the $6.5 million that Florida will receive, $3.3 million will go to the state’s General Revenue fund. The Agency for Health Care will be given $1.3 million for overcharges it paid Dey, and $369,000 will go to the Attorney General’s Medicaid Fraud Informant Program to reward individuals who report and provide information leading to convictions.