McKesson - Municipalities
On Apr. 30, 2012 United States District Judge Patti B. Saris gave final approval to an $82 million settlement in the case. Read the order approving the settlement.
Hagens Berman represented cities, counties and municipalities that alleged they overpaid for medications because McKesson Corporation (NYSE: MCK) engaged in a scheme to fraudulently inflate the price of more than 400 brand-name prescription drugs.
Municipalities pay for drugs used by their employees who are enrolled in self-insured health plans, and in some cases administer community clinics and other non-Medicaid or Medicare public assistance programs.
According to the complaint, filed on Aug. 7, 2008 in the U.S. District Court for the District of Massachusetts in Boston, McKesson violated federal racketeering laws by rigging the average wholesale price (AWP) of brand-name drugs while raising the spread between the published AWP and the wholesale acquisition cost from 20 to 25 percent. The complaint alleged that this was done in an effort to increase profits by currying favor with McKesson’s large retail pharmacy clients. The complaint alleged that McKesson cleverly concealed the scheme so that payors like municipalities would wrongfully attribute the increases to drug manufacturers.
The scheme was alleged to have inflated the price of more than 400 brand-name prescription drugs, including blockbusters such as Prozac, Lipitor, Zocor and Bioxx.
Another case brought by consumers and third-party payors settled in 2008 for $350 million. The settlement was given final approval by Judge Saris on Aug. 3, 2009.
Hagens Berman is continuing to litigate cases on behalf of six states over similar claims, including Oregon, Virginia, Utah, Montana, Mississippi and Connecticut.
Hagens Berman purchases advertisements on search engines, social media sites and other websites. Transmission of the information contained or available through this website is not intended to create, and receipt does not constitute, an attorney-client relationship. If you seek legal advice or representation by Hagens Berman, you must first enter a formal agreement. All information contained in any transmission is confidential and Hagens Berman agrees to protect information against unauthorized use, publication or disclosure. This site is regulated by the Washington Rules of Professional Conduct.