Dey L.P., a unit of Mylan Inc. (MYL), said Thursday that it has agreed to pay about $1 million in order to settle a pricing litigation with the State of Utah.
The lawsuit was filed in 2005 by the State of Utah against Dey and other companies pertaining to Medicaid reimbursements paid by the state to pharmacists and other healthcare providers.
Subsequently in 2007, Mylan acquired Dey from Merck KGaA (MRK). As part of the acquisition deal, Merck is responsible for paying the full amount of this settlement, as well as all costs and other expenses associated with pending and future-related Medicaid reimbursement lawsuits involving Dey.
As part of the settlement, the state acknowledges that the settlement does not constitute admission or evidence of fault, liability or unlawful conduct by Dey.
MYL closed Thursday's regular trading session at $15.71, down 14 cents on a volume of 6.99 million shares. In the after-hours, the shares further lost 31 cents or 1.97%.
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