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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

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)”.)

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
Health and Human Services
Court Type
Criminal
Disposition
Pleaded Guilty
Date of Announcement
7/30/2004
Contractors Involved Penalty
Total
Schering-Plough Corporation $52,500,000
Further Information Released
Pennsylvania AG Press Release 3/13/2010

See also:

Federal Contractor Misconduct Database