Plagued by allegations that the company engaged in illegal marketing tactics and overcharged Medicaid for its drugs, Schering-Plough has agreed to pay $435 million to resolve criminal and civil investigations. Of that, Schering-Plough will fork over $255 million to settle civil claims while its subsidiary, Schering Sales Corp., will pay $180 million in criminal fines while pleading guilty to a conspiracy to lie to government investigators probing the marketing of a brain cancer drug.
"With this agreement, we are putting issues from the past behind us," said Brent Saunders, senior vice president for compliance and business practices. Just two years ago, Schering-Plough agreed to pay $346 million to resolve claims that it engaged in a kickback scheme with a health insurer to protect its market for Claritin. Schering-Plough has been just one of a number of high profile drug companies accused of illegally manipulating the market--claims that have severely tarnished the reputation of the entire drug industry.
- read the Boston Herald's report for more