The more than $8.5 million will be used to reimburse the Division of Medicaid. This is the agency that Watson Inc. defrauded. It currently has a deficit of $24 million. The Mississippi Supreme Court ruled earlier this month that Watson Inc., a manufacturer of pharmaceuticals, defrauded the state Medicaid program by charging too much for drugs. The settlement of $33 million includes civil penalties, punitive, and compensatory damages. Attorney General Jim Hood stated that the settlement would affect the state general fund, at a time legislators are trying to cover several budget shortfalls. “The recoveries that we have been able to make have helped with the budget that they caused to crash over there. They gave all of our money away through tax cuts to large corporations. Hood spoke of recent legislative actions. This session, the Division of Medicaid isn’t the only agency facing a multi-million dollar deficit. The Division of Child Protection Services has a deficit of $12 million. John Read, Chairman of the House Appropriations Committee, stated last week that he wasn’t sure how the Legislature would address this gap. Read stated that funds to close the deficit will be needed. Hood stated that the attorney general’s office has recovered $224 million from similar lawsuits against drug companies. Kayleigh Skinner