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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

Overcharging the Government

Date: 02/16/2006 (Date of Settlement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – General

Contracting Party: Defense - General

Court Type: Civil

Amount: $3,000,000

Disposition: Settlement

Synopsis: McKesson Corporation, a wholesale pharmaceutical distributor, agreed to pay the United States $3 million to settle claims that it defrauded the Department of Defense from October 1997 to December 2001. The settlement resolved “allegations that the San Francisco-based corporation defrauded the United States by knowingly charging the Defense Department’s medical treatment facilities more for pharmaceutical products than was allowable under its prime vendor contracts with the government.”