Merck To Pay $4.2M To End Wis. Medicaid Fight

Law360, New York (March 28, 2011, 5:31 PM EDT) -- Merck & Co. Inc. and two of its predecessor companies will pay $4.2 million to settle allegations that they overcharged the Wisconsin Medicaid program by inflating average wholesale drug prices, the state’s attorney general said Monday.

Wisconsin's suit accuses Schering Corp. and defunct Warrick Pharmaceuticals Corp, former subsidiaries of Schering-Plough Corp., which is now part of Merck, of reporting bogus AWPs since 1993, with the knowledge that the state would use that information to calculate its reimbursement formulas.

“Consequently, Wisconsin Medicaid paid substantially more than the...
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