McKesson, Hearst Inflated Drug Prices, Mich. AG Says

Law360, New York (June 6, 2011, 7:04 PM EDT) -- Michigan's attorney general filed a lawsuit in state court Thursday alleging drug distributor McKesson Corp. and media giant Hearst Corp. worked in concert to artificially inflate wholesale drug prices, costing taxpayers millions of dollars in higher-priced Medicaid reimbursements.

The companies knowingly violated the Michigan Medicaid False Claims Act and common law by publishing false average wholesale prices for certain prescription drugs — including Advair, Allegra, Celebrex, Flonase, Lipitor and Zyprexa — between 2001 and 2009, according to the complaint.

Michigan Attorney General Bill Schuette called the...
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