Facts

In 1995, Ven-A-Care of the Florida Keys Inc. filed an action against Schering-Plough and subsidiary Warrick Pharmaceuticals on behalf of California, Florida, and the federal government, alleging Medicaid fraud.

PLAINTIFF'S CONTENTIONS:
The plaintiffs alleged that Schering-Plough intentionally inflated the "average wholesale price" of Albuterol, which is an asthma medication, and other drugs. Due to the inflation, California's Medicaid program overpaid millions of dollars in reimbursement payments to the company.

DEFENDANT'S CONTENTIONS:
Schering-Plough denied liability.

Damages

California claimed that the alleged fraud resulted in $41 million in damages.

Result

Schering-Plough agreed to settle, with California receiving $21.3 million and the federal government receiving $20.5 million.