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Hagens Berman Sobol Shapiro: Attorneys Representing Consumers Prepare for $12 Billion RICO Trial Against McKesson for Alleged Drug Price Manipulation
Date:8/29/2008

t not directly addressed by prior case-law," Berman said. "We understand and appreciate Judge Saris' ruling, and are eager to move forward with the strongest case -- the RICO charges."

The case represents two classes: consumer purchasers, which includes anyone who made a co-payment for prescription medication from August 1, 2001 through May 15, 2005, and all third-party payers that made a payment or reimbursement based on the inflated average wholesale price (AWP) during the class period.

The suit claims McKesson and First DataBank, a publishing company, reached a secret agreement on how the average wholesale price would be set for brand-name drugs and, in doing so, raised the spread between the published AWP and the actual acquisition costs from 20 to 25 percent in an effort to increase profits.

Earlier this year, First DataBank settled with plaintiffs, leaving McKesson as the sole defendant.

According to documents cited in the case, McKesson communicated the price increase to First DataBank, who published the information, even amid questions by manufacturers who recognized the impact to consumers and third-party payers. McKesson did so to raise the profits for its large clients like Rite Aid and Walgreen's.

For more information on this case and to sign up as a consumer or third-party payer you can visit the Hagens Berman Web site at http://www.hbsslaw.com.

About Hagens Berman Sobol Shapiro

Hagens Berman Sobol Shapiro, is based in Seattle with offices in Chicago, Cambridge, Los Angeles, Phoenix, San Francisco and New York. Since 1993, it has developed a nationally recognized practice in class-action and complex litigation. Among recent successes, HBSS has negotiated a $300 million settlement in the DRAM memory antitrust litigation, one of the largest anti-trust settlements in history; a $340 million recovery on behalf of Enron employees; a $150 million settlement inv
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SOURCE Hagens Berman Sobol Shapiro
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