Merck Pays $400 Million In National Medicaid Fraud Settlement;
New Investigation Model Ends Seven-Year Qui Tam Whistleblower Case
 

Landmarks and Firsts

The Case

Between 1998 and 2004, Merck employed several schemes with doctors and hospitals to defraud Medicaid and maintain market share for Vioxx®, the discontinued arthritis drug, and Zocor®, the statin whose patent protection expired in 2006, it was alleged.

When Dean Steinke, a Merck district sales manager, was unable to get management to stop its improper drug marketing tactics, he brought evidence to a team of experienced qui tam whistleblower attorneys. They took his case under seal to federal and state Governments.

After seven years of investigation and litigation, it was settled today, returning more than $400 million to federal and state taxpayers. Read More

The New Model

Experienced qui tam whistleblower attorneys helped foster the first fully-coordinated federal-state investigation. State and federal prosecutors worked side-by-side with the whistleblower and his attorneys, presenting Merck with a formidable, united front. Read More

Seven-Year Timeline

The whistleblower and his attorneys, with federal and state prosecutors, conducted a seven-year investigation that produced the second largest Medicaid drug fraud civil settlement in the history of the False Claims Act.

Qui Tam Whistleblowers

More than $20 billion has been recovered in federal civil actions under the False Claims Act since the statute was amended in 1986 to provide enhanced rewards and protections for qui tam whistleblowers. Read More

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The Attorneys

Steven H. Cohen
Mark Kleiman
BethAnne Yeager

2008 Lawyers of the Year - Recognition By Qui Tam Bar, D.C.-Based Taxpayers Against Fraud