McKisson faces suit over drug prices
Pharma Compliance Alert, May 28, 2008
McKisson, the biggest U.S. drug distributor, is accused of manipulating its average wholesale price (AWP) for more than 400 drugs in a lawsuit filed by the San Francisco City Attorney Dennis Herrera.
The suit alleges violations of the federal Racketeer Influenced and Corrupt Organizations Act, the False Claims Act, and California antitrust law. It seeks unspecified damages, civil penalties, restitution, and court costs. According to the lawsuit, McKesson arbitrarily increased the spread between wholesale acquisition costs and AWP to 25% from 20%, forcing insurers and consumers to pay artificially high prices.
In the suit filed in U.S. District Court for the District of Massachusetts, San Francisco is seeking certification of a class of California government agencies that bought drugs from Aug. 1, 2001, to the present. The suit is related to a class action lawsuit by private parties originally filed in Massachusetts in 2005. In March, Massachusetts District Judge Patti Saris excluded government entities from that lawsuit.
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