Merck settles Mass. Medicaid fraud claims for $24M
BOSTON—Drugmaker Merck & Co. will pay Massachusetts $24 million to settle a civil lawsuit accusing a former subsidiary of causing the state to overpay pharmacists for a widely used asthma medication.
Attorney General Martha Coakley said Tuesday that the deal with Merck and 12 other drugmakers who settled previously enables the state to recover more than $47 million for its Medicaid program.
The settlement comes more than a year after Merck said it would appeal a federal court verdict that found the company liable for about $4.6 million in compensatory damages related to pricing of three generic asthma products made by defunct Warrick Pharmaceuticals.