$435 million settlement to include Utah

Utah will be part of a $435 million settlement with drug manufacturer Schering-Plough Corp., Attorney General Mark Shurtleff said Friday.

The agreement settles a lawsuit that accused the Pennsylvania-based manufacturer of defrauding the Medicaid Program and improperly marketing drugs for "off-label" use. State and federal governments will get nearly $255 million in damages and penalties.

A company division also will plead guilty in federal court in Boston to criminal charges and pay $180 million in criminal fines.

Under the terms, Utah will recover just over $1 million for the Utah Medicaid program. Utah will be paid $323,000 directly, with the balance going to the federal government to reimburse its share of the Medicaid costs.

"This is a huge recovery for taxpayers," Shurtleff said in a news release. "Hopefully pharmaceutical manufacturers will finally get the message that breaking the law is bad for business and bad for consumers."