pharmaceutical fraud pharmaceutical fraud pharmaceutical fraud involves activities that result in false claims to insurers or programs such as medicare in the united states or equivalent state programs for financial gain to a pharmaceutical company. there are several different schemes used to defraud the health care system which are particular to the pharmaceutical industry. these include: good manufacturing practice (gmp) violations, off label marketing, best price fraud, cme fraud, medicaid price reporting, and manufactured compound drugs. examples of fraud cases include the glaxosmithkline $3 billion settlement, pfizer $2.3 billion settlement, and merck $650 million settlement. damages from fraud can be recovered by use of the false claims act, most commonly under the qui tam provisions which rewards an individual for being a "whistleblower", or relator (law). types of fraud main article: list of largest pharmaceutical settlements in the united states