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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…

Overcharging Medicaid

Bayer AG and GlaxoSmithKline simultaneously settled allegations they overcharged Medicaid. GSK agreed to pay the government a civil fine of $87.6 million for failing to give the Medicaid program the lowest price charged to any consumer for anti-depressant Paxil and nasal allergy spray Flonase. Both companies were accused of hiding their lowest prices from Medicaid by repackaging or relabeling their products under a middleman’s name, who then sold them at a deep discount not reported to the government. All 50 states will share in the settlement.

Misconduct Type
Health
Enforcement Agency
Health and Human Services
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Announcement
4/16/2003
Contractors Involved Penalty
Total
GlaxoSmithKline $87,600,000
Further Information Released
GSK Press Release 8/24/2007

Federal Contractor Misconduct Database