McKesson settles lawsuit over alleged price-fixing

The pharmaceutical wholesaler McKesson and First DataBank, a publisher of pharmaceutical pricing data, have been accused of conspiring to inflate prices of 1,800 brand name prescription drugs, according to The Lane Report. Kentucky Medicaid relied on average wholesale prices provided by First DataBank to develop Medicaid drug reimbursement rates, but claims that there was an inflation of prices.

The pharmaceutical wholesaler allegedly marked up its prices by 5 percent starting in 2001, without addressing the lower markups suggested by drug manufacturers. First DataBank released the numbers knowing that federal and state reimbursement programs for pharmacies would be based on those statistics.

McKesson distributes 33 percent of all medicine in North America and this lawsuit dealt a heavy toll on the company. The attorney general for the state of Kentucky has since announced that there has been a settlement with regard to the McKesson lawsuit for $9.84 million.

"Kentucky paid an additional five percent for scores of brand name drugs, resulting in increased sales for McKesson and millions of dollars in windfall profits for the pharmacies," Attorney General Jack Conway told the source. "I am pleased that we've been able to hold McKesson accountable for its deceptive practices and recover more than $9.8 million for a vital state program and for Kentucky taxpayers."

Businesses that are working with other companies and professionals should be aware of shady business deals that may implicate them in an illegal act, such as the one committed by McKesson.

In fact, business owners and employers should be wary of whistleblower lawsuits, as one survey released by the Ethics Resource Center showed that 56 percent of employees observed some form of misconduct violating ethical standards or the law. Arizona companies in need of assistance with improper conduct should contact knowledgeable attorneys at Phoenix law offices.

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