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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 »
Merck & Co., Inc.
Defrauding Louisiana’s Medicaid Program
Date: 02/07/2012 (Date of Settlement Announcement)
Misconduct Type: Antitrust
Enforcement Agency: State/Local
Contracting Party: None
Court Type: Civil
Synopsis: Louisiana recovered $25.2 million from five pharmaceutical companies the state accused of defrauding Louisiana’s Medicaid program: Actavis Group HF, Boehringer Ingelheim GmbH, Dey Pharma LP, GlaxoSmithKline, and Schering-Plough (merged with Merck in 2009). The companies allegedly misreported prescription drug price information, based on Average Whole Prices (AWPs), in order to increase Medicaid reimbursements. Schering-Plough paid the state a total of $5 million.