Pharmaceutical Companies To Pay U.S. $4.7 Billion In False Claims Act Cases

MedicationThe U.S. Government continues to collect federal funds that were not appropriately paid to private companies.  Three large pharmaceutical companies still owe the U.S. Government an amount totaling $4.7 billion as a result to False Claims Act allegations.

In 2011, the Department of Justice (DOJ) announced some of the largest sums owed to the U.S. Government under the FCA.   Merck & Co., Inc. owes the U.S. Government $950 million related to claims concerning the drug Vioxx.  Merck was engaging in unlawful conduct such as false claims to Medicaid and improper marketing.  Amgen Inc. announced it was setting aside $750 million to resolve FCA claims involving their anemia drug, Aranesp.  Allegations against Amgen Inc. are a result of kick-backs and off-label marketing of Aranesp.  GlaxoSmithKline PLC publicized that it was going to set aside $3 billion to resolve FCA liability pertaining to its drug Avandia.

This is the most recent group of cases involving major pharmaceutical companies and government healthcare programs since 2003. Still, there are over 150 other cases that the DOJ is investigating concerning overcharges from drug companies totaling billions of dollars.

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