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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 56
Schering-Plough Corporation
Schering-Plough's best known products include the allergy drugs Claritin and Clarinex, the anti-cholesterol drug Vytorin, Dr. Scholl's foot care products Coppertone skin care products. Schering-Plough Corporation merged with Merck & Co. in 2009.
Federal Contract $: $ 0.0m
Total Number of Instances: 10
Total Misconduct dollar amount: $1582.3m
Instances of Misconduct
1. 2002 FDA Consent Decree
Schering-Plough entered into a consent decree with the U.S. Food and Drug Administration and agreed to pay $500 million to to resolve issues involving the company's compliance with current Good Manufacturing Practices (GMPs) at manufacturing facilities in New Jersey and Puerto Rico. The agreement covered violations dating back to 1998 involving the prodution of hundreds of products, including the allergy medicine Claritin.... more»
2. Albuterol False Claims
Schering-Plough agreed to pay $69 million to settle False Claims Act lawsuits charging the company with inflating the price of the asthma drug Albuterol and other products in order to collect millions of dollars in overpayments from California and Florida's Medicaid programs. The settlement resolved allegations that Warrick Pharmaceuticals, a subsidiary of Schering-Plough, deliberately inflated the Average Wholesale Prices (AWPs) it reported to California and Florida.... more»
3. Off-Label Marketing, Overcharging and Kickbacks (Civil)
Schering-Plough agreed to pay over $255 million to settle civil False Claims Act charges related to improperly marketing four of its products for unapproved off-label uses, overcharging federal and state health care programs, and paying physicians kickbacks for prescribing its products. Schering-Plough subsidiary Schering Sales Corp. pleaded guilty to conspiracy to provide false statements in the same matter and paid a $180 million criminal fine. The unit was also permanently barred from participating in all federal health care programs. (See related Schering-Plough instance, "Off-Label Marketing, Overcharging and Kickbacks (Criminal)".)... more»
4. Off-Label Marketing, Overcharging and Kickbacks (Criminal)
Schering-Plough subsidiary Schering Sales Corp. pleaded guilty to conspiracy to make false statements and paid a $180 million fine to resolve criminal charges related to improperly marketing four of its products for unapproved off-label uses, overcharging federal and state health care programs, and paying physicians kickbacks for prescribing its products. It was also permanently barred from participating in all federal health care programs. Schering-Plough agreed to pay $255 million to settle civil False Claims Act claims in the same matter. (See related Schering-Plough instance, "Off-Label Marketing, Overcharging and Kickbacks (Civil)".)... more»
5. Fraudulent Pricing of Claritin (Criminal)
Schering-Plough subsidiary Schering Sales Corporation pleaded guilty to violating the Anti-Kickback Act and paid a fine of $52.5 million in connection with the illegal and fraudulent pricing of its allergy drug, Claritin. The government alleged that Schering Sales offered and paid a health maintenance organization ("HMO") a $1.8 million kickback to induce the HMO to keep Claritin on its formulary, a list of drugs that the HMO covers for its beneficiaries. Schering-Plough agreed to pay more than $290 million to resolve civil False Claims Act liabilities in the matter. (See related Schering-Plough instance, "Fraudulent Pricing of Claritin (Civil)".)... more»
6. Fraudulent Pricing of Claritin (Civil)
Schering-Plough agreed to pay more than $292 million to resolve civil False Claims Act liabilities in connection with the illegal and fraudulent pricing of its allergy drug, Claritin. Schering-Plough subsidiary Schering Sales Corp. pleaded guilty to violating the Anti-Kickback Act in the same matter. (See related Schering-Plough instance, "Fraudulent Pricing of Claritin (Criminal)".)... more»
7. Missouri Pricing Lawsuit
Schering-Plough and the state of Missouri settled a lawsuit in which the state accused the company of inflating prices for the drugs it sold to pharmacies participating in Missouri's Medicaid program. At the end of a two-week trial, Schering-Plough agreed to pay $31 million to settle allegations that its generics subsidiary, Warrick Pharmaceuticals Corp., inflated prices in a way that cost Missouri taxpayers millions of dollars. The jury had already found the company liable for $7.3 million in compensatory damages.... more»
8. Texas Medicaid Fraud
Schering Corporation, Schering-Plough Corporation and Warrick Pharmaceuticals Corporation agreed to pay the United States and the state of Texas $27 million to settle allegations of health care fraud. It was alleged that Schering subsidiary Warrick submitted false pricing information and caused providers to submit fraudulently inflated reimbursement claims to the state and federally funded Texas Medicaid program for drugs used to treat asthma and other respiratory conditions.... more»
9. Clarinex Securities Fraud Class Action
Schering-Plough agreed to pay $165 million to settle a securities fraud class action lawsuit accusing the company of misleading investors by failing to disclose deficiencies in the manufacture of its allergy drug Clarinex that led the U.S. Food and Drug Administration to delay its approval. In February 2001, the FDA announced it would put off approving Clarinex because of problems at manufacturing plants in New Jersey and Puerto Rico.... more»
10. Clarinex Derivative Lawsuit
Schering-Plough settled a shareholders' derivative lawsuit accusing the company of causing a drop in stock prices by failing to disclose deficiencies in the manufacture of its allergy drug Clarinex that led the U.S. Food and Drug Administration to delay its approval. In February 2001, the FDA announced it would put off approving Clarinex because of problems at manufacturing plants in New Jersey and Puerto Rico. A federal judge approved a settlement in which no damages were awarded, but Schering-Plough agreed to pay $9.8 million in attorneys' fees and expenses and pledged to reform its corporate governance practices.... more»
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