California A.G. Becerra Announces $10 Million Settlement With Major Pharmaceutical Companies - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
December 17, 2020 Newswires
Share
Share
Post
Email

California A.G. Becerra Announces $10 Million Settlement With Major Pharmaceutical Companies

Targeted News Service (Press Releases)

SACRAMENTO, California, Dec. 15 -- California Attorney General Xavier Becerra issued the following news release:

California Attorney General Xavier Becerra today announced a $10,397,052 nationwide settlement with Royal Pharmaceuticals LLC and Seton Pharmaceuticals LLC (Royal/Seton). The settlement was reached after the two jointly-held pharmaceutical companies self-disclosed underpaying Medicaid drug rebates to all 50 states from 2013 to 2017. California's total settlement amount is $410,192.05, of which $164,080.33 will return to the federal government, and the remaining $246,111.72 will return to the Medi-Cal program.

"Cheating a program like Medi-Cal, which provides health insurance for many of California's most vulnerable residents, is never okay," said Attorney General Becerra. "However, when drug manufacturers come forward and report the companies' error, we're able to right the wrong and get the money back to the Medi-Cal program where it belongs."

In September 2017, Royal/Seton self-reported the companies' inaccurate data to the North Carolina Medicaid Fraud Control Unit. As part of the Medicaid Drug Rebate Program (MDRP), drug manufacturers are required to pay rebates to state Medicaid programs for each of the companies' drugs that are covered by Medicaid. From September 2013 to January 2017, Royal/Seton inadvertently yet inaccurately reported information that is key to the Centers for Medicare and Medicaid Services' (CMS) determination of each drug's rebate amount. The drugs at issue were two low-potency topical steroid products: "Derma-Smoothe," which is made by Royal and its generic equivalent "fluocinolone," made by Seton. The companies were inaccurately reporting the drugs' Market Date, which is the date the drugs were first marketed under Royal/Seton's rebate agreement. This error altered CMS's formula resulting in a lower calculated rebate amount, and consequently, Royal/Seton's underpayment to all 50 states' Medicaid programs.

This settlement comes on the heels of a settlement with Memorial Health Services that was reached after the health system self-disclosed that it overcharged Medi-Cal for a period of three years. California's share of that settlement was $18.9 million.

Today's settlement was negotiated by the California Department of Justice's Division of Medi-Cal Fraud and Elder Abuse (DMFEA), working with a team of other states. Through the DMFEA, the Attorney General's office works to protect Californians by investigating and prosecuting those who perpetuate fraud on the Medi-Cal program. DMFEA also investigates and prosecutes those responsible for abuse, neglect, and fraud committed against elderly and dependent adults in the state. DMFEA regularly works with whistleblowers, the California Department of Health Care Services, and law enforcement agencies to investigate and prosecute.

A copy of the settlement agreement with Royal is available here(https://oag.ca.gov/sites/default/files/California%27s%20Royal%20Settlement%20Agreement.pdf) and a copy of the settlement agreement with Seton is available here(https://oag.ca.gov/sites/default/files/California%27s%20Seton%20Settlement%20Agreement.pdf).

Older

Fed Revises Upward Growth Forecasts And Says Pandemic Remains A Risk

Newer

Answers To Questions About Trump’s Efforts To Overturn Georgia’s Election Results

Advisor News

  • Millennials seek trusted financial advice as they build and inherit wealth
  • NAIFA: Financial professionals are essential to the success of Trump Accounts
  • Changes, personalization impacting retirement plans for 2026
  • Study asks: How do different generations approach retirement?
  • LTC: A critical component of retirement planning
More Advisor News

Annuity News

  • Symetra Enhances Fixed Indexed Annuities, Introduces New Franklin Large Cap Value 15% ER Index
  • Ancient Financial Launches as a Strategic Asset Management and Reinsurance Holding Company, Announces Agreement to Acquire F&G Life Re Ltd.
  • FIAs are growing as the primary retirement planning tool
  • Edward Wilson Joins SEDA, Bringing Deep Expertise in Risk Management, Derivatives Trading and Institutional Prime Brokerage
  • Trademark Application for “INSPIRING YOUR FINANCIAL FUTURE” Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
More Annuity News

Health/Employee Benefits News

  • Findings from University of Connecticut School of Medicine Provides New Data about Managed Care (Nursing Home Ratings and Characteristics Predict Hospice Use Among Decedents With Serious Illnesses): Managed Care
  • Missouri, Kansas families pay nearly 10% of their income on employer-provided health insurance
  • Researchers from California Polytechnic State University Report on Findings in COVID-19 (Exploring the Role of Race/Ethnicity, Metropolitan Status, and Health Insurance in Long COVID Among U.S. Adults): Coronavirus – COVID-19
  • TrumpRx: Better prescription drug deals may already exist
  • U.S. REP. KATHY CASTOR JOINED BY TAMPA SMALL BUSINESS OWNER WHO FACES CRUSHING COST INCREASE FOR HEALTH COVERAGE FOR STATE OF THE UNION
More Health/Employee Benefits News

Life Insurance News

  • Braden Draggoo Named New York Life’s 2025 Council President
  • U.S. insurers optimistic despite increased headwinds
  • Symetra Enhances Fixed Indexed Annuities, Introduces New Franklin Large Cap Value 15% ER Index
  • Pacific Life agrees to a $58M settlement in California PDX class action
  • Best’s Market Segment Report: AM Best Revises Outlook on Germany’s Non-Life Insurance Segment to Stable
Sponsor
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

LIMRA’s Distribution and Marketing Conference
Attend the premier event for industry sales and marketing professionals

Get up to 1,000 turning 65 leads
Access your leads, plus engagement results most agents don’t see.

What if Your FIA Cap Didn’t Reset?
CapLock™ removes annual cap resets for clearer planning and fewer surprises.

Press Releases

  • ICMG Announces 2026 Don Kampe Lifetime Achievement Award Recipient
  • RFP #T22521
  • Hexure Launches First Fully Digital NIGO Resubmission Workflow to Accelerate Time to Issue
  • RFP #T25221
  • LIDP Named Top Digital-First Insurance Solution 2026 by Insurance CIO Outlook
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet