Schering- Plough Pays $31 Million to Resolve Pharmaceutical Fraud Allegations

Nolan and Auerbach — Tue, 04 Nov 2008 17:18:43 +0000

The State of Missouri filed a lawsuit against Schering-Plough in May 2005 and alleged in its complaint that the company did not accurately report drug prices for drugs sold to pharmacies involved in the Missouri Medicaid program. This is the largest settlement figure the State of Missouri has ever recovered in a pharmaceutical pricing fraud. This is one of a number of lawsuits filed by state AG’s office against pharmaceutical companies alleging pharmaceutical fraud. They typically follow qui tam lawsuit fact patterns.

For further information click here or if you think you have a False Claims Act case contact Nolan & Auerbach, P.A.

Federal Judge Rules Drug Companies Engaged in Drug Price Deception

Nolan and Auerbach — Mon, 25 Jun 2007 14:32:27 +0000

In a class action lawsuit that claims drug companies unfairly adjusted prices of medication, the plaintiffs scored a major victory when Judge Saris found that defendants “unfairly and deceptively caused false AWPs to be published knowing that payers and the government did not understand the truth and the severity of the markups.” The named defendants are AstraZeneca, Schering-Plough and Bristol-Myers Squib.

In her opinion dated June 21, 2007, Judge Saris wrote that “Unscrupulously taking advantage of the flawed AWP system … by establishing secret mega-spreads far beyond the standard industry markup was unethical and oppressive.” She also wrote that such practices, “caused real injuries to the insurers and patients” who paid inflated prices for life-sustaining drugs. Such drug pricing fraud is part of a broad category of pharmaceutical fraud.

AWP is Average Wholesale Price, the measure by which drugs were generally paid for by healthcare payors in years past. Medicare now pays for drugs on an Average Sales Price basis, which is an actual price and less likely to be manipulated.

To read more of the story look here.

Pharma 101 - Pharmaceutical Fraud » Schering-Plough

Schering- Plough Pays $31 Million to Resolve Pharmaceutical Fraud Allegations

Federal Judge Rules Drug Companies Engaged in Drug Price Deception