Judge certifies lawsuit against McKesson
A federal judge certified a class-action lawsuit that accuses North America's largest pharmaceutical distributor of inflating wholesale drug prices.
A federal judge certified a class-action lawsuit that accuses North America's largest pharmaceutical distributor of inflating wholesale drug prices. Filed in Boston last fall by a Seattle-based law firm, the lawsuit claims McKesson entered into a secret agreement to artificially inflate the reported average wholesale prices of thousands of drugs. According to the suit, McKesson entered into a secret pact with First Databank in 2001 on criteria to be used to determine wholesale prices of brand-name drugs. In her ruling, U.S. District Court Judge Patti Saris wrote, "As a result of this artificial increase, thousands of TPP [third-party payers], public entities, and consumers have had their drug prices increased." The lawsuit contends McKesson violated federal racketeering and various California consumer laws - breaches that carry hefty fines upon conviction. A McKesson spokesman declined to comment on the lawsuit certification decision, saying the company does not discuss pending litigation.
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