McKesson Pays $9.84M To Settle Ky. Drug Price Inflation Suit

Law360, New York (December 6, 2012, 5:37 PM EST) -- Pharmaceutical wholesaler McKesson Corp. has reached a $9.84 million settlement with the commonwealth of Kentucky over allegations that it conspired with a publisher of pharmaceutical data to inflate drug prices reported for 1,800 brand-name prescription drugs, the state’s attorney general said Thursday.

According to Kentucky Attorney General Jack Conway, the Kentucky Medicaid program relied on average wholesale prices published by pharmaceutical data publisher and co-defendant First DataBank Inc., a subsidiary of Hearst Corp., to calculate and set Medicaid drug reimbursement rates.

Beginning in 2001, McKesson, which...
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