Since 2005, drug companies have been dogged by accusations that they manipulated a key benchmark known as “average wholesale price” so that they could overcharge state and federal Medicaid programs for prescription drugs. State attorney generals picked the fight, and in some cases lined up the help of plaintiffs firms chasing a contingent fee. Class action lawyers got in on the action, too. The cottage industry of AWP litigation is still going strong, but the endgame seems to be nearing. Case in point: The country’s largest drug wholesaler, McKesson Corporation, reached a deal on July 27 that will resolve much of its remaining AWP litigation woes.
New York Attorney General Eric Schneiderman announced that McKesson has agreed to pay $151 million to 29 states and the District of Columbia to resolve claims that it overbilled state health insurance programs for more than 1,400 brand name drugs between 2001 and 2009. McKesson, represented by Morrison & Foerster, will not admit any wrongdoing. Prosecutors in New York and California led the negotiations. New York will get $64 million of the award.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
