Pfizer Settles Medicaid Overcharging Suit

Pfizer Inc. agreed to pay $49 million to settle a suit alleging that a company it acquired two years ago overcharged the federal and state governments for Lipitor, a cholesterol-lowering drug.

The settlement was more than double the $21 million the Medicaid program overpaid for the drug in 1999.

Pfizer said the Lipitor suit was a “legacy” from its acquisition of Warner-Lambert Co., Parke-Davis’ parent, in 2000. Pfizer said it would work with the Department of Health and Human Services to ensure future compliance.

Shares of New York-based Pfizer fell 34 cents to $31.56 on the NYSE.