United States Joins Lawsuit against Drug Maker

By Katie Hauser

Published on September 20, 2006

The lawsuit claims that beginning in January 1993, Dey fraudulently reported inflated prices for medicines to government health plans. It is alleged that in some cases, Dey overcharged the government, through Medicaid and Medicare, by more than five times the actual value of medications.

The suit was originally filed under the federal False Claims Act by a Florida-based home-care company, Ven-A-Care. Under the False Claims Act, individuals, or “whistleblowers," can sue fraudulent parties on behalf of the government, and recover up to 25 percent of any money awarded. The Department of Justice has recently reviewed the case, and the government has agreed to join the suit.

Merck is the third largest generic drug producer in the world, and also holds the largest claim in the world’s liquid crystal shares, which are used to make flat-panel displays.

The case was assigned to U.S. District Court Judge Morris E. Lasker in Boston, Massachusetts.

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