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news.According to a federal Settlement Agreement, Merck & Co. has agreed to pay more than $400 million to the 49 US states and the District of Columbia to settle qui tam whistleblower-led allegations that the pharmaceutical giant illegally defrauded Medicaid and other public healthcare programs across the US.
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Merck employed four schemes to grab or maintain market share for drugs including Vioxx, Zocor, Cozaar, Fosamax, Maxalt, and Singulair, according to qui tam whistleblower lawyers Steven Cohen, Mark Kleiman and BethAnne Yeager, who represent the whistleblower, a former Merck district sales manager.
Although Merck did not admit to wrongdoing, in addition to returning $400 million to taxpayers, the Whitehouse Station, New Jersey-based drug manufacturer has agreed to be bound by a corporate integrity agreement.
Aside from the huge settlement, the second largest FCA civil fraud Medicaid recovery, the case is said to have marked new ground with a collaborative investigation model that saw the relator and his lawyers work closely with state and federal government investigators to press the case.