McKesson settles pricing suit
Pharma Compliance Alert, November 26, 2008
McKesson agreed to pay $350 million to settle all private party claims relating to First DataBank’s published average wholesale prices (AWP), according to a company release.
The company also established a reserve fund of $143 million to settle future AWP claims by public entities. The settlement, which is still subject to a court review, includes an express denial of liability.
In 2005, a class of consumers and health and welfare funds filed suit against McKesson, claiming it conspired with First DataBank to inflate reimbursement by expanding the spread between AWP and the wholesale acquisition cost by an additional 5%.
AWP is widely used as a pricing standard. In the suit, the plaintiffs claimed the inflated AWP caused consumers and third party payers to overpay for medications.
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