Massachusetts Seeks $250 Million From Warrick Pharma–Schering-Plough Acquisition

The Commonwealth of Massachusetts has filed a strident Memo of Law in support of a $250 million fine against Warrick Pharmaceuticals/Schering Plough for pricing fraud on Proventil. A federal jury found against the company recently. Part of the claim was filed under The Massachusetts False Claims Act for claims caused to be presented to MassHealth. According to the Memorandum, Schering-Plough, which purchased Warrick, plead guilty in 2004 and again in 2006 to felony criminal offenses which defrauded the Medicaid program nationwide, including MassHealth. In 2008, Merck & Co, Schering-Plough’s merger partner, agreed to pay $650 million to resolve claims that it had defrauded Medicaid nationwide, including MassHealth. The Commonwealth’s brief argues “strong medicine is required to cure the defendant’s disrespect for the law.”