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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: 54
AmerisourceBergen
AmerisourceBergen is one of the world's largest pharmaceutical services companies serving the United States and Canada. Servicing both pharmaceutical manufacturers and healthcare providers in the pharmaceutical supply channel, the Company provides drug distribution and related services designed to reduce costs and improve patient outcomes. AmerisourceBergen's service solutions range from pharmacy automation and pharmaceutical packaging to pharmacy services for skilled nursing and assisted living facilities, reimbursement and pharmaceutical consulting services, and physician education. With more than $54 billion in annual revenue, AmerisourceBergen is headquartered in Valley Forge, PA, and employs more than 13,000 people. AmerisourceBergen is ranked #23 on the Fortune 500 list.
Federal Contract $: $1416.5m
Total Number of Instances: 8
Total Misconduct dollar amount: $ 36.1m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Politicial Activity
- Press Page
- SEC 10K
- Contracting Information
- Website
Instances of Misconduct
1. Fagan v. AmerisourceBergen Corp. (Counterfeit Drugs)
Fagan, at age 16, almost died after he received injections of counterfeit drugs prescribed after he underwent an emergency liver transplant. Fagan sued AmerisourceBergen, the distributor of the drug. Both parties settled the suit in February 2006 for an undisclosed amount.... more»
2. Helbig v. Interstate Pharmacy Corporation (Reissuing of Medications)
“The allegations in the class action suit alleged that prior to February 2000, PharMerica's IPC pharmacy [a subsidiary of AmerisourceBergen] in Hawaii accepted returned medications and reissued them for other patients in violation of Hawaii law. There were no allegations of physical harm to any patient.” Under the settlement, PharMerica paid $2 million to a fund for class action members and $1.2 million to the University of Hawaii for programs benefiting senior citizens.... more»
3. Allegations of Illegal Kickbacks
PharMerica, a subsidiary of AmerisourceBergen, “agreed to pay $5,975,000 and to enter into a corporate integrity agreement to resolve its liability under the CMPL provisions applicable to kickbacks. The [Office of Inspector General for the Department of Health and Human Services] alleged that PharMerica entered into a purchase and sale agreement with the owners of a nursing facility chain to acquire the chain’s institutional pharmacy for $7.2 million. Prior to the purchase of the pharmacy, the pharmacy had been operational for only eight weeks and was serving a small percentage of the nursing facilities’ approximately 2800 residents. PharMerica allegedly conditioned its purchase of the pharmacy on the creation of a pharmacy services agreement (PSA) that contractually required the nursing facilities to order its drugs from the pharmacy. PharMerica allegedly negotiated the PSA itself in the month before the execution of the PSA. The OIG alleged that the PSA was backdated to July 9, 1996 to make it appear that the pharmacy had a longer operating history than it did.”... more»
4. Petters Company Inc. v. Stayhealthy Inc., et. al. (Breach of Contract)
The lawsuit began when Petters Company Inc. filed suit against AmerisourceBergen claiming that the company’s failure to purchase certain health care machines from Stayhealthy resulted in Stayhealthy being forced to default on loans made by Petters. Stayhealthy filed a crossclaim against AmerisourceBergen asserting claims for breach of contract, fraud, promissory estoppel, unjust enrichment, defamation, conversion, interference with economic advantage and federal trade libel. The matter was ultimately settled out of court for an undisclosed amount.... more»
5. Failure to Conform to Current Good Manufacturing Practices
In 1996, an inspection at a drug repackaging operation at Amerisource Health Services Corporation revealed “serious deviations from the Current Good Manufacturing Practices Regulations.” These violations include “failure to establish adequate procedures for control of labels and labeling,” “failure to adequately perform or document training of personnel,” and “failure to adequately clean, document, and verify the adequacy of cleaning of packaging rooms and equipment between production runs.”... more»
6. Failure to Request FDA Approval
On October 11, 2002 the FDA submitted a letter to Amerisource Health Services Corporation, a subsidiary of AmerisourceBergen, in reference to the firm’s marketing of Humibid LA Tablets. The FDA had recently approved a similar drug; however, Amerisource had not received approval for Humibid. Marketing this new drug without FDA approval violated the Federal Food, Drug, and Cosmetic Act and required Amerisource to bring its marketing efforts into compliance with the act.... more»
7. Controlled Substances (Temporary Suspension of Distribution License)
In April 2007, the U.S. Drug Enforcement Agency temporarily suspended AmerisourceBergen's Orlando, Fla., distribution center's license to distribute DEA-controlled substances and listed chemicals. The DEA claimed AmerisourceBergen did not maintain effective controls against diversion of controlled substances, specifically hydrocodone, to four Internet pharmacies between January 2006 and January 2007. In June 2007, AmerisourceBergen signed an agreement with the DEA that will lead to the distribution center's reinstatement in August.... more»
8. Bridge Medical Stockholder Lawsuit
The Delaware Court of Chancery ruled that AmerisourceBergen must pay $21 million, plus prejudgment interest of $5.9 million, to the former stockholders of Bridge Medical Inc., a former subsidiary AmerisourceBergen acquired in 2003 and sold in 2005. The stockholders alleged they were entitled to payments that were conditioned upon Bridge achieving certain earnings levels in 2003 and 2004, and that AmerisourceBergen breached its obligations to assist the Bridge sales force and promote its bedside point-of-care patient safety product.... more»
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