NEW YORK (AP) -- Hi-Tech Pharmacal said Thursday that it will pay $25 million to resolve allegations that it overcharged the Texas Medicaid program.

The Amityville, N.Y., company said it has already set aside money to cover the settlement and is not acknowledging any wrongdoing or liability.

Hi-Tech had said in July that it set aside $15.5 million to cover a potential settlement tied to an investigation by the Texas Health and Human Services Commission into the submission of price information.

Hi-Tech Pharmacal Co. also said Thursday that its shareholders have approved the sale of the company to Akorn and it expects the deal to close by the end of March. Akorn agreed to buy Hi-Tech in August for $640 million. Both companies make generic drugs.


The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.