Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharma over allegations that the company misrepresented the effectiveness of Dyanavel Cr, an ADHD medication marketed for children.
What did Texas allege?
The Texas Attorney General's Office sued Tris Pharma and CEO Ketan Mehta in 2023, alleging the company used false and misleading claims to market Dyanavel XR to Texas Medicaid providers and decision-makers.
According to the state, Tris overstated the drug's efficacy and directed sales representatives to tell doctors that Dynavel XR worked significantly faster than competing ADHD medications and provided other unproven benefits for pediatric patients. The Attorney General's 2023 lawsuit alleged those messages were repeated during thousands of sales calls to Texas Medicaid providers.
Under the newly announced agreement, Tris Pharma will pay $7.5 million to Texas to resolve the state's claims. The case also involved whistleblower Tarik Ahmed.
The settlement does not constitute an admission of wrongdoing or liability by Tris Pharma or Mehta, according to a statement from the whistleblower's attorneys. Bloomberg Law also reported that the company and Mehta denied wrongdoing.
What is Paxton saying?
AG Ken Paxton: "Tris Pharma is now paying millions of dollars for misleading folks about ADHD drugs being prescribed to children."
AG Paxton continued: "Pharmaceutical companies that distort the truth to sell their products will face the consequences. I will consequences." I will continue using every tool available to protect Texas children, safeguard taxpayer dollars, and hold Big Pharma accountable."
The Bottom Line
The $7.5 million settlement resolved Texas claims that Tris Pharma misrepresented Dyanavel XR's efficacy to Medicaid providers and other healthcare decision-makers. The agreement follows Paxton's 2023 lawsuit and investigation into the company's marketing practices.
