General view of the AstraZeneca headquarters in Shanghai, China, on March 20, 2026, as AstraZeneca plans to open a new research and development center. (Photo by Ying Tang/NurPhoto via Getty Images)
AUSTIN, Texas - Texas will receive nearly $34 million under a settlement with AstraZeneca Pharmaceuticals LP over allegations the company used an illegal kickback scheme to influence Medicaid-covered prescriptions, according to the Texas Attorney General's Office.
Inside the AstraZeneca "illegal kickback" allegations
What we know:
AstraZeneca will pay $33,998,000 to resolve claims brought under the Texas Health Care Program Fraud Prevention Act. The settlement resolves the state's claims without a trial, according to the attorney general's office.
The release alleges that AstraZeneca provided free nursing services and reimbursement support to health care providers and paid third parties to deploy nurses and other medical professionals, in an effort to recommend AstraZeneca drugs to physicians, while also presenting the services as non-branded patient counseling.
Texas recovers millions over misused taxpayer dollars
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What they're saying:
According to Ken Paxton's office, the incentives were intended to encourage providers to prescribe AstraZeneca medications. The state alleged that many of those prescriptions were paid for by Texas Medicaid, resulting in millions of dollars in Medicaid claims that were improperly influenced by the company's conduct.
The settlement resolves the state's claims and will return nearly $34 million to Texas.
"I will not allow Big Pharma to misuse taxpayer dollars to put profit ahead of Texans' health," Paxton said in a statement. "My office will continue aggressively pursuing health care fraud to protect taxpayer dollars and the integrity of our health care system."
Texas continues legal crackdown on Big Pharma
Ken Paxton, Texas attorney general and Republican US Senate candidate, during a campaign event at The Angry Elephant in Magnolia, Texas, US, on Wednesday, May 20, 2026. The Texas Senate race's price tag is already up to more than $160 million for bot …
What's next:
The settlement is part of its broader effort to pursue Medicaid fraud cases involving pharmaceutical companies, according to the office.
The office has also filed lawsuits against Eli Lilly, Sanofi-Aventis and other drug manufacturers alleging fraud and abuse by accusing the pharmaceutical giants of bribing and inducing medical providers to prescribe its most profitable drugs.
The Source: Information in this article was provided by the Texas Attorney General's Office.