A class-action lawsuit filed in federal court in Massachusetts against McKesson Corporation alleges McKesson and pharmaceutical data publishing company First DataBank entered into a secret agreement to artificially inflate the average wholesale price (AWP) of hundreds of brand-name drugs. The government uses average wholesale prices as reported by drug companies to set reimbursements from federal health programs. The lawsuit was filed on behalf of healthcare consumers and third-party payors who allegedly overpaid for drugs by billions of dollars. In November 2008, McKesson agreed to settle all private party claims for $350 million. The settlement terms, which are subject to final court approval, include an express denial of liability. Claims made by public entities, including federal, state and local governments, remain pending. See related McKesson pending instance, “Connecticut Drug Prices Lawsuit.”