Prevacid Suit Means Pain at Abbott Unit

Abbott Laboratories is digesting some painful news about its blockbuster heartburn medication.

A high-profile whistleblower has sued TAP Pharmaceuticals, a joint venture half-owned by Abbott, for allegedly overbilling Medicaid for Prevacid -- a drug that, last quarter, generated nearly three times more revenue than Abbott's second-best-selling drug.

New Orleans physician John LaCorte, who has already won other whistleblower lawsuits, claims that TAP violated its agreement to offer Medicaid its "best price" for Prevacid by charging the agency up to 20 times more for the drug than it charged some of its other customers. LaCorte sued TAP on behalf of the federal government and is seeking triple damages, plus a $10,000 fine for each violation. He alleges fraudulent behavior that, he says, dates back more than a decade. ...