Merck Settles Dispute with $671-Million Payout

Summary


In a case in Philadelphia, Merck agreed to pay US$399 million plus interest for improper calculation of Medicaid rebates and its marketing practices. In a Louisiana case, it agreed to pay $250 million plus interest for its rebate practices.

From 1997 to 2001, Merck also gave money and perks to doctors and other health-care professionals to entice them to prescribe Merck drugs, a practice the government called excessive.

"What we have here is a disagreement (over) the rules of the Medicaid rebate program," said Merck spokesman Ronald Rogers. "These civil settlements were the best and most appropriate way to resolve these lengthy investigations and bring these matters to closure."

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Merck Settles Dispute with $671-Million Payout

By Maryclaire Dale

PHILADELPHIA -- Merck and Co. has agreed to pay US$671 million to settle claims that it over...

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