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Drug distributor McKesson Corp. has agreed to pay consumers and health plans $350 million to settle a lawsuit brought by the New England Carpenters Health Fund alleging it conspired to inflate the cost of hundreds of drugs.
The case was brought in 2005 and claimed that McKesson conspired with Hearst Corp.??s First DataBank to arbitrarily increase pharmacy profits on sales while increasing the company??s market share. The scheme involved manipulating the posted prices and markups in an industry-wide system setting average wholesale prices (WAP). First DataBank reached a settlement in 2006 over claims made regarding their involvement.
The settlement received extensive national news coverage, including in the Wall Street Journal and Bloomberg News Service. A Google News search turned up dozens of additional articles. Follow links for the complete stories.