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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

McKesson

Michigan Drug Prices Lawsuit

Date: 06/02/2011 (Date of Complaint)

Misconduct Type: Antitrust

Enforcement Agency: State/Local

Contracting Party: None

Court Type: Civil

Amount: $0

Disposition: Pending

Synopsis: Michigan Attorney General Bill Schuette sued McKesson, accusing the company of conspiring to artificially inflate the wholesale prices of brand-name drugs – including Lipitor, Zyprexa, Allegra, Celebrex, and Advair – between 2001 and 2009. During this same time period, Michigan Medicaid spent nearly $2 billion on the brandname pharmaceuticals in question, as well as approximately $80 million on the affected generic drugs. The lawsuit alleges that McKesson and pharmaceutical data publishing company First DataBank (owned by Hearst Corporation) conspired to artificially inflate the average wholesale price (AWP) of the drugs, causing the Michigan Medicaid program to overpay pharmacy claims by millions of dollars.