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Posted in Pharmaceuticals Blog

Merck will pay $670 million to settle Medicaid fraud claims

February 8th, 2008 by Todd Hageman

Merck, the maker of Vioxx, failed to pay rebates to Medicaid and to other government health programs.  And the company paid kickbacks to doctors and hospitals in an effort to get them to prescribe its medicines.  Now, the drug maker must pay $670 million to settle Medicaid fraud claims raised in two separate lawsuits filed by whistleblowers under the False Claims Act. 

After negotiations with the Justice Department, Merck also consented to a Corporate Integrity Agreement which means good behavior is required for the next five years. Pharmalot has more on the settlement as well as a timeline that traces the origins and developments of the case.

If you or someone you know has been injured as a result of taking a dangerous medication or by the use of a dangerous medical device, contact Todd Hageman toll free at 1-877-767-3108 or e-mail THageman@simonpassanante.com.

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