Kansas Attorney General Derek Schmidt today announced a settlement with pharmaceutical company Mallinckrodt ARD, LLC to resolve a lawsuit alleging Medicaid fraud involving the underpayment of Medicaid drug rebates. The settlement will recover $1.28 million for Kansas taxpayers. Schmidt said the settlement was reached involving all 50 states, the District of Columbia and the federal government. The lawsuit asserted Mallinckrodt violated the Federal False Claims Act and the Kansas False Claims Act, through the submission of false claims to the Kansas Medicaid program. Payments will be made to Kansas over a period of seven years.