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King Pharmaceuticals Inc.

A former employee, Ed Bogart, blew the whistle by complaining that the pharmaceutical company was incorrectly reporting prices. Under the Medicaid Drug Rebate Program, pharmaceutical manufacturers are allowed to provide large rebates to pharmacy benefit managers, but they are also required to give the government their best price. The U.S. Attorney's office and the U.S. Department of Justice filed a lawsuit against King claiming they violated federal laws by not providing the government with information on the prices other pharmaceutical companies charge their largest commercial customers. King is set to pay a $124 million settlement for their violations. (Nov-02-05) [HOUSTON BUSINESS JOURNAL]


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Published on Nov-7-05


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