- Associated Press - Wednesday, November 4, 2015

ALBANY, N.Y. (AP) - State authorities have reported a $54 million settlement with drug companies to close an investigation into Medicaid overcharges.

New York Attorney General Eric Schneiderman says Delaware-based AstraZeneca LP will pay 49 states and the federal government $46.5 million and Pennsylvania-based Cephalon Inc. will pay $7.5 million.

The settlement resolves allegations the companies underpaid drug rebates to the states by treating certain fees paid to wholesalers as discounts.

Schneiderman says New York’s $8.5 million share will go to its Medicaid program.

AstraZeneca says it admits no wrongdoing, that its approach reflected a reasonable interpretation of the law, and state payments were part of the settlement announced by the Justice Department in July.

Cephalon’s parent company Teva says it also confirmed the settlement months ago with recent agreements finalized state by state.

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