In re McKesson Governmental Entities Average Wholesale Price Litigation., 08-cv-10843 (D. Mass.)
McCulley McCluer served as Plaintiffs’ Executive Committee Counsel in this class action on behalf of public payors of prescription drugs to recover damages caused by a scheme to inflate drug prices.
McCulley McCluer served as Plaintiffs' Executive Committee Counsel in this class action on behalf of public payors of prescription drugs to recover damages caused by a scheme to inflate drug prices. The firm’s clients included the States of Oklahoma and Montana, as well as Baltimore, Maryland, Columbia, South Carolina, Panama City, Florida, and Douglas County, Kansas.
Pharmacies are reimbursed by many local government prescription drug plans based on the average wholesaler price or AWP of each drug as published by First DataBank, Inc. The suit alleges that McKesson Corporation, the nation’s largest drug wholesaler and First DataBank, the dominant publisher of electronic drug pricing data, inflated the AWPs of hundreds of brand-name drugs, which resulted in government entities begin overcharged by millions of dollars in excessive drug reimbursements from 2001 to 2009.
On March 4, 2011 the District Court certified a nationwide class of local governmental entities pursuing RICO claims againt McKesson. A copy of the decision is available HERE.
Shortly before trial, an $82 million settlement was achieved for the class. The District Court granted final approval to the settlement on May 1, 2012.
Plaintiffs’ Executive Committee also included the law firms Richardson Patrick Westbrook & Brickman LLC, Hagens Berman Sobol Shapiro LLP and Kotchen & Low LLP.
McCulley McCluer has achieved settlements of similar claims for the States of Oklahoma and Utah. The firm is continuing to litigate claims against McKesson on behalf of the State of Mississippi.