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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…

Inflated Drug Prices (Massachusetts Lawsuit)

Merck and its generic drug subsidiary, Warrick Pharmaceuticals Corporation, agreed to pay Massachusetts $24 million to settle a False Claims Act lawsuit brought by the Attorney General accusing Merck and 12 other companies of knowingly reporting inflated prices to industry price reporting services between 1995 and 2003. The lawsuit alleged that Merck (f/k/a Schering-Plough Corporation), its wholly-owned subsidiary, Schering Corporation, and Warrick reported false and inflated prices for three albuterol products, a drug used to treat asthma and other respiratory diseases. In September 2010, a federal jury awarded the Commonwealth $4.6 million in damages; following post-verdict motions, the judge awarded a total of $18 million (treble damages plus civil penalties and pre-judgment interest). Both sides settled in lieu of pursuing appeals of the trial court award.

Misconduct Type
Antitrust
Enforcement Agency
State/Local
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
12/20/2011
Contractors Involved Penalty
Total
Merck & Co., Inc. $24,000,000
Further Information Released
MA Attorney General Press Release 3/1/2012

Federal Contractor Misconduct Database