Ranbaxy Laboratories to pay $40 million to settle Texas litigation

Generic drugmaker Ranbaxy Laboratories said it had agreed to pay $39.75 million to settle litigations concerning its participation in Texas Medicaid, the US federal-state healthcare program for the poor.

The payments will be made in tranches through August 2015, Ranbaxy informed the Bombay Stock Exchange (BSE) on Thursday.

"The claims at issue related exclusively to the manner in which Ranbaxy has historically reported pricing data to Texas Medicaid for certain of its drugs," the company said in the statement.

Ranbaxy shares were up 0.24 per cent at Rs 599.50 on BSE at 10:34 am in Mumbai, while the broader Nifty was up 0.09 per cent on Thursday.

(Reuters)