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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 »

McKesson

U.S. ex rel. Morgan v. Express Scripts, Inc. (Medicaid Fraud)

Date: 04/26/2012 (Date of Federal Settlement Announcement)

Misconduct Type: Antitrust

Enforcement Agency: Multiple Agencies

Contracting Party: None

Court Type: Civil

Amount: $341,000,000

Disposition: Settlement

Synopsis: A whistleblower lawsuit filed in 2005 accused McKesson of defrauding the Medicaid program by falsely reporting inflated average wholesale prices (AWP) on more than 1,400 brand name drugs to the First DataBank (FDB) system, causing the federal and state governments to overpay millions of dollars in reimbursements. In April 2012, McKesson settled with the federal government for $190 million. Three months later, McKesson settled with 29 states and the District of Columbia for $151 million.