Schering Sales Corporation sentenced to criminal fine
Healthcare Auditing Weekly, January 29, 2007
Schering-Plough subsidiary Schering Sales Corporation was sentenced in federal court last week in connection with making false statements to government agencies to hide illegal off-label promotion, reports the United States Attorney's Office in Massachusetts.
In August of 2006, Schering agreed to pay $435 million to resolve criminal charges and civil liabilities.
The judge sentenced Schering Sales Corporation to pay a $180 million criminal fine. Schering Sales pleaded guilty on September 20, 2006, to conspiring to make false statements to the FDA about improper promotional activity and to the Health Care Financing Administration (now CMS) about its best price for certain drugs.
The company also pleaded guilty to conspiring with others to give free drugs to an HMO to disguise a new lower price being offered to the HMO to obtain its business, and pleaded guilty to conspiring with others to make false statements to the FDA regarding certain illegal promotional activities. Visit the Department of Justice's Web site to read more.
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