Drug Firm Agrees to Large Fine
The drug firm Schering-Plough Corp. announced Friday that it has agreed to pay $346 million in fines and damages in order to settle allegations that it overcharged for medicines sold through Medicaid.
The Kenilworth, N.J.-based company also said it would plead guilty to a federal criminal charge over a kickback scheme with a health maintenance organization, the Associated Press reported.
Federal prosecutors in Philadelphia began investigating the company in 1999 after being alerted by whistleblowers who said that Schering-Plough was giving kickbacks to some private health care providers.
The company will pay a criminal fine of $52.5 million and civil damages of $293 million.
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