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Company: Merck
Current Parent Company:
Merck
Parent at the Time of the Penalty Announcement:
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Penalty: $290,000,000
Year: 2008
Date: February 7, 2008
Offense Group: government-contracting-related offenses
Primary Offense: False Claims Act and related
Secondary Offense: kickbacks and bribery
Mega-Scandal:
Drug Pricing Abuses
Violation Description: Merck agreed to pay $290 million to resolve multistate allegations that it failed to pay proper rebates to state Medicaid programs and that it paid illegal remuneration to health care providers to induce them to prescribe the company's products. This was part of a larger $650 million settlement involving the federal government; see the Violation Tracker entry at
(click here)
Level of Government: state
Action Type: agency action
Agency: Multistate Attorneys General Case
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: New Jersey
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: pharmaceuticals
Specific Industry of Current Parent: pharmaceuticals
Source of Data:
(click here)
Source Notes: If an online information source is not working, check the Violation Tracker
Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the
Update Log.