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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 »

GlaxoSmithKline

Overcharging Medicaid

Date: 04/16/2003 (Date of Announcement)

Misconduct Type: Health

Enforcement Agency: Health and Human Servs.

Contracting Party: None

Court Type: Civil

Amount: $87,600,000

Disposition: Settlement

Synopsis: Bayer AG and GlaxoSmithKline simultaneously settled allegations they overcharged Medicaid. GSK agreed to pay the government a civil fine of $87.6 million for failing to give the Medicaid program the lowest price charged to any consumer for anti-depressant Paxil and nasal allergy spray Flonase. Both companies were accused of hiding their lowest prices from Medicaid by repackaging or relabeling their products under a middleman's name, who then sold them at a deep discount not reported to the government. All 50 states will share in the settlement.