Life Sciences

Judge throws out McKesson pricing suit

Pharma Compliance Alert, September 10, 2008

U.S. District Judge Patti Saris dismissed one potential class-action lawsuit against McKesson Corp. that alleged the drug distributor engaged in unlawful price fixing, according to a Reuters article.

The suit accuses McKesson and First DataBank of secretly manipulating an industry-wide pricing system based on published average wholesale prices beginning in late 2001. Health plans and state Medicaid programs use the published prices to determine how much they pay pharmacies.  

Saris certified a second suit, alleging federal racketeering violations, as a nationwide class-action suit in March. That lawsuit, which seeks more than $5 billion in damages, will go to trial December 1.

McKesson handles one third of the prescription medications used in North America, and it is one of the largest generic-drug distributors in the United States.

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