Merck to pay $615 million settlement to Medicaid for Vioxx claims
Drug and health experts say that prescription drug abuse and inadvertant poisonings are growing largely based on the ease of access of pills.
Merck has agreed to a $15 million settlement with the federal government and 42 states, including Georgia, to lay to rest civil and criminal allegations that they made false and misleading statements about the drug Vioxx, Georgia Attorney General Sam Olens announced Tuesday.
Merck will pay the states and the federal government a total of $615 million in civil damages and penalties to compensate Medicaid, Medicare and other federal healthcare programs for harm suffered as a result of this conduct. Georgia Medicaid will receive $15,648,300.46 in state and federal dollars, and the state portion of that amount is $6,822,077.81, Olens office said.
The specific allegations of the claim were that Merck marketed Vioxx for uses not approved by the U.S. Food and Drug Administration and misrepresented possible heart risks of the drugs. In addition to the settlement, Merck has agreed to plead guilty to violating federal food and drug protection laws and pay a fine and forfeiture of more than $300 million.
Vioxx was marketed as a drug to treat rheumatoid arthritis.
See the attorney general’s press release below:
Merck to Pay Georgia Medicaid Over $15 Million to Settle Vioxx Claims
Attorney General Sam Olens announced that the State of Georgia, along with 42 other states and the federal government, has reached an agreement with Merck Sharp & Dohme Corporation (Merck) to settle civil and criminal allegations that Merck made false and misleading representations about its drug Vioxx. Specifically, the allegations claim that Merck marketed Vioxx for uses not approved by the United States Food and Drug Administration (FDA) and misrepresented the cardiovascular safety issues relating to the drug.
Merck will pay the states and the federal government a total of $615 million in civil damages and penalties to compensate Medicaid, Medicare and other federal healthcare programs for harm suffered as a result of this conduct. Georgia Medicaid will receive $15,648,300.46 in state and federal dollars, and the state portion of that amount is $6,822,077.81.
In addition, Merck has agreed to plead guilty to a violation of the Food, Drug, and Cosmetic Act and to pay a criminal fine and forfeiture of more than $300 million. The criminal component of the resolution centers on the illegal marketing and promotion of Vioxx for the treatment of rheumatoid arthritis. Vioxx was introduced into the market in 1999 but was not approved by the FDA as an indication for rheumatoid arthritis until 2002. While it is not illegal for a physician to prescribe a drug for an unapproved use, federal law prohibits a manufacturer from promoting a drug for uses not approved by the FDA. The civil settlements are contingent upon the acceptance of Merck
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