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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…
Nominal Pricing Fraud
Merck was accused of violating the Medicaid Rebate Statute in marketing its cholesterol drug Zocor, its prescription pain medication Vioxx, and its anti-heartburn drug Pepcid. Merck allegedly offered hospitals large discounts for all three products if hospitals used them instead of competitors’ brands. The law requires companies to sell drugs to Medicaid at the best price they offer to any customer, but in this instance Merck did not offer similar discounts to Medicaid. Merck was also alleged to have induced physicians to use its products through the payment of illegal kickbacks. In February 2008, Merck agreed to pay more than $650 million to settle the allegations, brought in two separate False Claims Act lawsuits. Merck also entered into a five-year corporate integrity agreement with the Department of Health and Human Services Office of Inspector General.
- Misconduct Type
- Health
- Enforcement Agency
- Multiple Agencies
- Contracting Party
- None
- Court Type
- Civil
- Disposition
- Settlement
- Date of Announcement
- 2/7/2008