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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…

Underpayment of Medicaid Rebate Obligations

Four companies including Johnson & Johnson subsidiary Ortho McNeil Pharmaceutical entered into settlement agreements for a total of $124 million to resolve claims that they violated the False Claims Act by failing to pay appropriate rebates to state Medicaid programs for prescription drugs by misclassifying them. Ortho McNeil paid $3.4 million ($1.87 million to the federal government and $1.53 million to the states) to resolve allegations that it underpaid its rebate obligations with respect to Dermatop.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Justice
Contracting Party
Health and Human Services
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
10/19/2009
Contractors Involved Penalty
Total
Johnson & Johnson $3,400,000
Further Information Released
DOJ Press Release 10/19/2009

Federal Contractor Misconduct Database