News

Four US drug companies pay $124m for defrauding Medicaid

BMJ 2009; 339 doi: http://dx.doi.org/10.1136/bmj.b4500 (Published 29 October 2009) Cite this as: BMJ 2009;339:b4500
  1. Janice Hopkins Tanne
  1. 1New York

    Four US drug companies have made settlements with the US Department of Justice and agreed to pay $124m (£75m; €84m) to resolve false claims that they submitted to the US Medicaid programme after a whistleblower complained.

    The companies were Mylan Pharmaceuticals and UDL Laboratories, which paid $118m; Astra Zeneca, which paid $2.6m; and Ortho McNeil, which paid $3.4m.

    The amount recovered by the US government will be shared between the federal government, the states, the Public Health Service’s drug pricing programme, and the whistleblower.

    “The [US federal] False Claims Act allows a citizen [a whistleblower] to bring fraud to the attention of the government. …

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