And so, the legacy albuterol matter ends (in Massachusetts, at least — but Wisconsin, and other states still retain their individual claims, here), leaving Ken Frazier holding yet another bad I.O.U. note, from Fred Hassan and crew. His band of merry elves (payout artists) escaped with some $400 to $500 million in change of control and separation benefits, as the top six busted up Schering-Plough, and sold it off (essentially in pieces) to Whitehouse Station, in Novemeber of 2009.
. . . .Massachusetts recovers $24 million from Merck, in its largest Medicaid fraud settlement ever. . . .
The state previously recovered a total of $23.4 million from the other 12 companies involved, but Merck, the nation’s second-largest drug maker, appealed a US District Court ruling last year in favor of the state. Its decision to settle brings the entire case to a close. . . . The state could have accepted $1.5 million to $2 million two years ago as part of a settlement of a related federal case against Merck, but it chose to press its own case against the Whitehouse Station, N.J., company. . . . Initially, the suit named Warrick Pharmaceuticals Corp., a generic drug unit of the former Schering-Plough Corp.; it was bought by Merck for $41 billion in 2009. . . .
Yet another parting “White Elephant failed-bust-up gift“, courtesy of that impish elf, and Ex-CEO, Fast Freddy Hassan. Sheesh. [Remember here that Hassan and Co. had proposed a highly structured animal health deal that ultimately had to be unwound, in early 2011 — as it was almost universally found to be too likely to violate relevant US and EU antitrust laws.] Where were we? Oh yes.
Still it is true (on the main topic) that, at one point, the Massachusetts AG thought it could recover up to $250 million from Merck, for this (alleged) Warrick malfeasance. So, this isn’t the top of the range, in settlement, by any means.