McKesson settles lawsuit with 29 states over prescription drug price-fixingJuly 30, 2012 3:00 pm Leave your thoughts
Businesses should be aware that price-fixing tactics in an attempt to create a monopoly on the market is not a legal practice. This has recently been highlighted by the Apple e-books price-fixing scandal. Along with Apple, McKesson Corporation has also allegedly committed illegal price-fixing activities. A business attorney in Phoenix can provide the necessary services for a business owner who wishes to avoid such scandals.
Recently, McKesson, the country's leading drug provider, has reached a $151 million settlement over inflating drug prescription prices, which cost many states' Medicaid programs millions of dollars in overpayments.
After filing lawsuits, 29 states received a settlement from McKesson, which includes New York, California, Florida, Georgia, Texas, Vermont and Michigan. The federal government settled its own suit over the issue in April 2012 when officials received a $187 million settlement.
California will be collecting a $24 million settlement because the overpayments lasted eight years, from 2001 to 2009, while other states had a shorter length of time in their claim against the company.
"In these difficult budget times, it is crucial that California's scarce public resources support the urgent needs of our state," California's Attorney General Kamala Harris said in a statement. "We cannot allow dollars meant for patients to be diverted to inflate corporate profits."
However, McKesson representative Kris Fortner claimed that the company did not commit any illegal activities and the allegations are without merit. Fortner said the company decided that a settlement was necessary because of the "inherent uncertainty of litigation."
Nonetheless, state and federal investigators allege that McKesson inflated the prices of more than 1,200 drugs including Allegra, Lipitor, Prozac and Ritalin.
Arizona businesses that want to protect their company should speak to Phoenix business lawyers to ensure the prices set under their contracts and on their products or services do not violate any laws.
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