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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…

ENHANCE Securities Litigation

Merck and Schering-Plough shareholders filed a class action lawsuit alleging that Merck, Schering-Plough Corporation and Merck/Schering-Plough Pharmaceuticals violated the federal securities laws by failing to disclose material information and making false and misleading statements about the commercial prospects of the cholesterol drug Vytorin (a combination of the Merck drug Zocor and the Schering-Plough drug Zetia) between 2006 and 2008. They claimed that the defendants concealed the results of a clinical test (known as the “ENHANCE” study) that showed Vytorin was no more effective than Zocor alone. The plaintiffs also alleged that Schering made false and misleading statements in connection with offerings of Schering stock in August 2007. In June 2013, the lawsuit was settled for $473 million. See related Merck instances, “Vytorin/Zetia Securities Litigation” and “Vytorin Multistate Investigation”.

Misconduct Type
Securities
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement
6/3/2013
Contractors Involved Penalty
Total
Merck & Co., Inc. $473,000,000
Further Information Released
Law Firm Press Release 10/1/2013
Settlement Agreement 6/3/2013

See also:

Federal Contractor Misconduct Database