By Jonathan Stempel

(Reuters) -Pfizer and supplier Tris Pharma reached a $41.5 million settlement with Texas to resolve a lawsuit claiming they defrauded the state’s Medicaid program over alleged quality control lapses in a medicine to treat attention deficit hyperactivity disorder in children.

Texas Attorney General Ken Paxton said on Wednesday the settlement resolves a November 2023 lawsuit accusing the companies of manipulating testing for Quillivant XR between 2012 and 2018, to ensure it would comply with federal law and remain eligible for sale.

Paxton said properly done tests often showed the liquid medicine failed to dissolve in the body and was therefore ineffective. He said the defendants’ actions violated the Texas Health Care Program Fraud Prevention Act.

“Under my watch, Bi

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