Government
Drugmaker will pay millions to resolve Claritin pricing lawsuit
NEWS IN BRIEF — Posted Aug. 16, 2004
Schering-Plough Corp. will pay $345 million to resolve government charges over the way it marketed and priced its allergy medication Claritin. The company pleaded guilty to violating federal anti-kickback laws when it paid an HMO to maintain preferred treatment for Claritin, according to the United States Attorney for the Eastern District of Pennsylvania and the Pennsylvania Attorney General. The company will pay a $52.5 million criminal fine.
Schering-Plough also will pay $293 million in civil damages to settle claims that it violated the False Claims Act by overcharging Medicaid and other programs by not reporting its true best price for Claritin.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/08/16/gvbf0816.htm.