The U.S. Dept. of Justice announced that Schering-Plough Corporation will pay $345 million dollars and plead guilty to criminal charges to resolve criminal and civil liabilities stemming from its fraudulent pricing of Claritin, an allergy medication.
The False Claims Act charges were based on Schering-Plough’s failure to account for deep discounts it offered to Cigna and Pacificare when it reported its “best price” to the federal government.
The whistleblowers who initially filed suit on behalf of the federal government will share a reward of more than $31.6 million.
Read the U.S. Dept. of Justice’s July 30, 2004 press release.
Schering-Plough’s corporate integrity agreement is also available.
The New York Times July 31, 2004 article requires registration.