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McKesson

Governmental Entities Average Wholesale Price Litigation

Date: 10/25/2011 (Date of Settlement Announcement)

Misconduct Type: Antitrust

Enforcement Agency: State/Local

Contracting Party: None

Court Type: Civil

Amount: $82,000,000

Disposition: Settlement

Synopsis: McKesson agreed to pay $82 million to resolve a class-action lawsuit brought by several local government entities accusing the company and pharmaceutical data publisher First DataBank, Inc., of fraudulently inflating the prices of many brand-name prescription drugs, including Prozac, Lipitor, Zocor and Vioxx. The suit alleged that McKesson and First DataBank inflated the Average Wholesale Price (AWP) of hundreds of brand-name drugs, causing governments to pay hundreds of millions of dollars in excessive drug reimbursements from 2001 to the present. The settlement included an express denial of liability of any kind by McKesson.