McKesson Pays $190M To End Drug Price Inflation Claims

Law360, New York (April 26, 2012, 4:35 PM EDT) -- Pharmaceutical distributor McKesson Corp. will pay the federal government $190 million to settle allegations it fraudulently inflated pricing information for several brand-name prescription drugs, causing Medicaid to overpay for those drugs, the U.S. Department of Justice said Thursday.

The government alleged that McKesson knowingly inflated the so-called average wholesale price for the drugs it reported to First Databank Inc., a company that publishes drug price data, between 2001 and 2005 — allegations that have already resulted in a slew of similar lawsuits filed against McKesson, as...
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