Organon, Others Want $421M Medicaid FCA Suit Tossed

Law360, New York (July 8, 2011, 5:05 PM EDT) -- Organon USA Inc., Merck & Co. Inc. and Schering Plough Corp. asked a Massachusetts federal court Thursday to dismiss a False Claims Act suit by ex-Organon employees accusing them of concocting a kickback scheme that helped overcharge the government by $421 million.

The relators claim the drug companies engaged in a variety of illegal kickbacks to long-term care pharmacies that sold the antidepressant Remeron, and defrauded the government by violating the Anti-Kickback Statute, the FCA and Medicaid “best price” laws.

The drug companies said that any...
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