Texas has reached a $41.5 million settlement with pharmaceutical companies Pfizer and Tris Pharma over allegations involving an ADHD medication supplied through the state’s Medicaid program. The agreement, announced Wednesday by Texas Attorney General Ken Paxton, resolves a lawsuit filed in 2023 accusing the companies of drug adulteration and fraudulent reimbursement claims.
The case centered on Quillivant XR, a liquid medication prescribed to treat Attention Deficit Hyperactivity Disorder, primarily in children. Texas alleged that between 2012 and 2018, quality control tests showed the drug often failed to dissolve properly in the body, reducing its effectiveness. Prosecutors claimed test results were manipulated to allow the drug to qualify for Medicaid payments.
Paxton said the state pursued the case to protect children and taxpayers, accusing the companies of supplying substandard medication while seeking public funds. He said the settlement sends a message that pharmaceutical companies will be held accountable for misleading claims about drug performance.
Under the agreement, both Pfizer and Tris Pharma deny any wrongdoing or liability. Pfizer said internal reviews found no safety risk to patients and stressed its commitment to product quality and patient well-being. Tris Pharma echoed that position, saying it stands by the quality and benefits of Quillivant XR, both past and present.
Quillivant XR was originally developed by NextWave Pharmaceuticals, which Pfizer acquired in 2012. Tris Pharma manufactured the drug for Pfizer until 2018, when Tris purchased the product line and Pfizer stopped marketing it. Both companies confirmed that timeline in their statements.
The lawsuit stemmed from a whistleblower complaint filed by Tarik Ahmed, Tris Pharma’s former chief technology officer, who worked at the company between 2013 and 2017. His allegations triggered the state’s investigation and subsequent legal action.
While the settlement closes the case without an admission of fault, Texas officials say it represents a significant recovery for taxpayers and a warning to drugmakers operating within public health programs.
