State Settles ‘Important’ Medicaid Fraud Claim With Merck

By WGBH News & Wires

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Dec. 21, 2011

 
BOSTON — Drugmaker Merck & Co. will pay Massachusetts $24 million to settle a civil lawsuit accusing a subsidiary of causing the state to overpay pharmacists.

State Attorney General Martha Coakley said on Dec. 20 that Warrick, a generic drug company later bought by Merck, inflated the wholesale price of albuterol, a commonly used asthma drug.

“It’s an important settlement not only for the money to come back to Massachusetts… but to send the message out that we are going to be very aggressive for looking for Medicaid fraud and holding people accountable when it occurs,” Coakley told WGBH News.

Under the settlement, Merck does not admit liability or wrongdoing.
 
Material from The Associated Press was used in this report.

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