McKesson Inks $37M Settlement In Drug Price-Rigging Suit

Law360, New York (October 18, 2013, 4:53 PM EDT) -- McKesson Corp. will pay $37 million to resolve accusations it ripped off Virginia’s Medicaid program by artificially inflating the average wholesale prices of pharmaceuticals, state officials announced Friday, in one of the drug distributor’s costliest settlements related to alleged gouging.

The payout, which is far larger than most states have netted in the nationwide scandal, includes almost $17 million in compensatory damages, $13.5 million in penalties and more than $5 million to cover the cost of outside counsel. Virginia is represented by Seattle-based Hagens Berman Sobol...
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