For Immediate Release
Media Contact: Todd Dvorak
(208) 334-4112

Date: October 15, 2014

Idaho Settles Medicaid Fraud Case Against Organon USA Inc.

(Boise) – Attorney General Lawrence Wasden has reached a settlement agreement with Organon USA Inc., a New Jersey-based pharmaceutical company accused of misrepresenting the cost of its antidepressant drug and providing kickbacks to care providers.

Under terms of the deal, Wasden said today that Organon will pay the Department of Health and Welfare's Division of Medicaid $52,929 for allegations tied to the drug Remeron. Idaho's share is part of a broader $31 million settlement reached with other states and the federal government.

"One result of the company's price misrepresentations is that Idaho's Medicaid program paid more than it should have for Remeron," Wasden said. The case was handled by the Attorney General's Medicaid Fraud Control Unit.

The settlement resolves allegations the company, from 1999 through 2005, knowingly manipulated and failed to report its true "best price" to the federal government for the sale of Remeron and Remeron SolTab, drugs used to treat depression. The company was also accused of providing kickbacks to long-term pharmacy providers and promoting the sale and use of the drugs for conditions that had not been approved by the Food and Drug Administration.

The kickbacks, alleged to have occurred between 1999 and 2007, were designed to encourage care providers to use Remeron over other antidepressants available in the marketplace, Wasden said.

The alleged misconduct caused the company to submit false claims for payment to the State Medicaid Program related to Remeron and Remeron Sol Tab.

Citizens interested in reporting Medicaid fraud, theft, or abuse should contact the Medicaid Fraud Control Unit of the Attorney General's Office by calling (208) 334-4100 or report the fraud online here.

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