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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…

Misreporting Prices for Nasal Sprays

Aventis Pharmaceutical Inc., a subsidiary of Sanofi-Aventis U.S. LLC, agreed to pay the United States $95.5 million to settle allegations that it violated the False Claims Act by misreporting drug prices in order to reduce its Medicaid Drug Rebate obligations. The government alleged that between 1995 and 2000, Aventis and its corporate predecessors knowingly misreported best prices for its steroid-based, anti-inflammatory nasal sprays Azmacort, Nasacort and Nasacort AQ. The Medicaid Drug Rebate Statute requires drug manufacturers to report to Medicaid the lowest, or “best,” price that it charges commercial customers and pay quarterly rebates to the states based on those reported prices. It was alleged that, in order to avoid triggering a new best price that would obligate it to pay millions of dollars in additional rebates to Medicaid, Aventis entered into “private label” agreements with Kaiser Permanente that repackaged Aventis’s drugs under a new label.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Health and Human Services
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Announcement
5/28/2009
Contractors Involved Penalty
Total
Sanofi-Aventis $95,500,000
Further Information Released
DOJ Press Release 6/4/2009

Federal Contractor Misconduct Database