DOJ Joins Whistleblower Suit Against Merck Affiliate

Law360, New York (September 11, 2006, 12:00 AM EDT) -- The U.S. Department of Justice said Monday that it has intervened in a whistleblower lawsuit accusing generic drug maker Dey Inc., an affiliate of German pharmaceutical company Merck KGaA, of engaging in a fraudulent scheme to overcharge federal health care programs.

In its complaint, filed in the U.S. District Court for the District of Massachusetts, the government alleged that Dey – which sells generic drugs that are reimbursed by Medicare and Medicaid – reported prices that were more than five times the actual sales prices on...
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