Texas Attorney General Ken Paxton has secured a $7.5 million settlement with Tris Pharmaceuticals, known as Tris Pharma, over claims about the effectiveness of Dyanavel XR, an attention-deficit/hyperactivity disorder (ADHD) drug marketed for children, according to an Oct. 1 news release from the Office of the Attorney General.
The settlement resolves a lawsuit Paxton filed in 2023 against Tris Pharma and its chief executive, Ketan Mehta. The attorney general’s office said an investigation uncovered an alleged scheme to defraud the Texas Medicaid program through false and misleading claims about the drug.
According to the release, Tris Pharma overstated Dyanavel XR’s efficacy and directed sales representatives to tell doctors, including Texas Medicaid providers, that the drug worked significantly faster than competing medications and offered other unproven benefits for pediatric patients. The office said those claims were spread during thousands of sales calls.
Under the settlement, Tris Pharma is required to pay $7.5 million to Texas, the attorney general’s office said.
“Tris Pharma is now paying millions of dollars for misleading folks about ADHD drugs being prescribed to children. Pharmaceutical companies that distort the truth to sell their products will face the consequences. I will continue using every tool available to protect Texas children, safeguard taxpayer dollars, and hold Big Pharma accountable,” Paxton said in the release.
The release did not describe how the settlement funds would be directed.