Schering-Plough Slides

Schering-Plough ( SGP) fell Monday with the drugmaker reportedly ready to settle Medicaid fraud charges with the federal government.

The New Jersey-based company is expected to pay $350 million in fines to settle fraud charges, according to The Wall Street Journal.

The settlement, which is still being negotiated, could be finalized as soon as this week.

The case involves allegations that Schering violated federal law by failing to give the Medicaid programs the best prices for its drugs.

Neither federal prosecutors nor the company would comment, according to the Journal story.

Schering-Plough shares fell 25 cents, or 1.3%, to $18.45, having enjoyed a sizable rally in recent weeks. Shares touched $18.70 Friday, up from $16.10 on June 15.

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