CHARLESTON, W.Va. (Legal Newsline) – The West Virginia Republican Party is calling Darrell McGraw an "expensive embarrassment" in the wake of a federal appeals court ruling against him.

GOP chairman Mike Stuart said Friday that McGraw is wasting taxpayer dollars by continuing to pursue his case against the federal Department of Health and Human Services, which is withholding Medicaid funds from the state because of a pair of 2004 settlements crafted by McGraw.

The settlements stemmed from lawsuits in which McGraw alleged harm caused to the state's Medicaid program by a pharmaceutical company. Even though the federal government supplies most of the state's Medicaid budget, the settlements did not provide for any funds to be returned to it.

The Departmental Appeals Board and a federal judge ruled for the federal government before the U.S. Court of Appeals for the Fourth Circuit joined them Wednesday, though Chief Deputy Attorney General Fran Hughes promised to fight the decision.

"The people of West Virginia deserve to know who is representing the state in this case and the exact costs to continue this embarrassing action," Stuart said.

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