A federal judge has ruled that three pharmaceutical companies artificially marked up their prices in order to defraud Medicare and encourage doctors to prescribe their drugs over those of competitors.
The decision came in a class-action lawsuit against AstraZeneca, Bristol-Meyers Squibb, Johnson & Johnson and Warwick Pharmaceuticals, a subsidiary of Schering-Plough Corp. U.S. District Judge Patti Saris ruled against AstraZeneca, Bristol-Meyers Squibb and Warwick, while clearing Johnson & Johnson of "egregious misconduct."
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U.S. drug companies defrauded Medicare with price fixing scheme, rules judge
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