Kotchen & Low LLP to Pursue Nationwide Governmental Entity Class Action Against McKesson for Alleged Prescription Drug Overcharges
Lawrence, KS, August 4, 2008 — It was reported today that Kotchen & Low LLP was retained by Douglas County, Kansas, to pursue alleged prescription drug overcharges by McKesson Corporation on behalf of a nationwide class of self-insured governmental entities. See County to Join Lawsuit Over Pharmaceutical Pricing, Lawrence Journal-World (Aug. 4, 2008).
Plaintiffs allege that drug wholesaler McKesson conspired with drug data publishing company First DataBank, Inc. to fraudulently inflate certain prescription drugs’ “Average Wholesale Price,” or “AWP” – a benchmark that is widely used by insurers, self-insured governmental entities, and others to determine the reimbursement price for most prescription medications. As a result of the AWP scheme, Plaintiffs have allegedly been paying inflated prices for hundreds of prescription drugs from late 2001 to present.
A nationwide class action lawsuit on behalf of private payors making the same allegations is currently pending in federal court in Massachusetts. See New England Carpenters Health Benefits Fund v. McKesson, No. 05-CV-11148-PBS (D. Mass.).