Tris Pharmaceuticals has agreed to pay Texas $7.5 million to settle allegations that the company made false or misleading claims about the effectiveness of an ADHD medication marketed for children.
Texas Attorney General Ken Paxton sued Tris Pharma and CEO Ketan Mehta in 2023, accusing the company of misleading doctors and Texas Medicaid providers about Dyanavel XR, a medication used to treat attention-deficit/hyperactivity disorder.
The state alleged Tris overstated how quickly Dyanavel XR worked compared with competing medications and promoted other benefits that had not been proven. According to the attorney general’s office, those claims were made during thousands of sales calls to doctors.
The lawsuit alleged the marketing practices were part of a scheme to improperly obtain payments through the Texas Medicaid program.
Under the settlement, Tris Pharma will pay $7.5 million to Texas. The agreement resolves the lawsuit without an admission of wrongdoing. Tris Pharma and Mehta deny liability and the allegations against them.
The settlement follows a separate agreement reached last year involving Tris Pharma and Pfizer. The companies agreed to pay $41.5 million to resolve Texas allegations involving manufacturing and testing practices for another ADHD medication, Quillivant XR.
That settlement also resolved disputed claims without an admission of liability.
