Multiple states, including Kentucky, have reached a $31 million settlement with drug manufacturer Organonfollowing allegations of several infractions.
The case alleges Organon underpaid Medicaid rebates, misrepresented its drug prices to Medicaid and promoted its antidepressant Remeronfor use in unsafe conditions. Specifically, the drugs’ side effects were marketed as possible benefits. Remeron was also advocated for use in children.
The company also allegedly offered nursing home pharmacy companies discounts and rebates to encourage the use of Remeron and Remeron SolTab over competing antidepressants.
The act violated the federal Anti-Kickback Statute and resulted in the sending of false claims to the Kentucky Medicaid program.
In a statement, Kentucky Attorney General Jack Conway said he's glad to see money returned to the state's Medicaid program.
The commonwealth will receive $347,929 in the settlement. Of that cash, about one third will stay with the federal government. The rest will be returned to the Kentucky Department for Medicaid Services.
The alleged infractions came to light after two whistleblower lawsuits were filed in Massachusetts and Texas.
