Navigation Links
Hagens Berman Sobol Shapiro: Nationwide Class Action Certified in Average Wholesale Price Litigation
Date:3/24/2008

Industry giant, McKesson, facing billions of dollars in damages.

BOSTON, March 24 /PRNewswire/ -- Last week a United States District Court judge certified a nationwide class-action lawsuit against McKesson Corporation (NYSE: MCK) that could become the largest class action in the United States, potentially totaling $7 billion in damages for consumers and third-party payers.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080317/AQM144LOGO)

The lawsuit, filed by Seattle-based Hagens Berman Sobol Shapiro in 2006 on behalf of third party payers and consumers, claims that McKesson engaged in a scheme to fraudulently inflate the price of more than 400 prescription drugs, including blockbusters such as Prozac, Lipitor, Zocor, Vioxx and more.

"We have been fighting this battle on behalf of smaller groups for years," said Hagens Berman managing partner and lead attorney Steve Berman. "With this ruling we now have the opportunity to represent millions of Americans nationwide who have been affected by McKesson's unlawful practices."

The judge's ruling allows this case to move forward on behalf of 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 original lawsuit claims McKesson and First DataBank, a publishing company, reached a secret agreement on how the average wholesale price would be set for brand-named 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.

According to documents cited in the court's order 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.

In her ruling, Judge Saris cited internal documents where McKesson boasted that by the end of 2004 nearly "99%" of all brand-name drugs were set at a higher price as a result of the scheme. The order also noted that pharmacy benefit managers (PBMs) benefited from the scheme and cited a top secret Express Scripts document where an executive cautioned to "put a lid on" the financial benefit ESI was receiving from the price increase.

Attorneys estimate that damages on behalf of consumers could total from $200 to $800 million and damages on behalf of third-party payers will exceed $5 billion.

In August of 2007, Judge Saris initially certified the class of third-party payers, but not for damages, which last week's ruling includes. McKesson argued that third-party payers each have a unique contract with its PBMs, which allows for negotiation in drug pricing.

The lawsuit claims McKesson violated the federal Racketeer Influenced and Corrupt Organizations (RICO) act, and if found guilty, could be forced to pay treble damages under the RICO statute as well as under various consumer protection statutes.

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 and San Francisco. 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 involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS served as counsel in a $850 million Washington Public Power Supply settlement and represented Washington and 12 other states against the tobacco industry that resulted in the largest settlement in history. For a complete listing of HBSS cases, visit http://www.hbsslaw.com.

CONTACTS:

Steve Berman (206) 623-7292

Hagens Berman Sobol Shapiro

Steve@hbsslaw.com

Mark Firmani (206) 443-9357

Firmani + Associates Inc.

Mark@firmani.com


'/>"/>
SOURCE Hagens Berman Sobol Shapiro
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Hagens Berman: Eleven Defendants Settle in Average Wholesale Price Litigation
2. Anatomist Dr. Gunther von Hagens Clarifies: Plastinates Not For Sale
3. CORRECTED: Hagens Berman Sobol Shapiro Files Suit Against Merck and Schering-Plough
4. Hagens Berman Sobol Shapiro Announces Investigation Into Marketing of Vytorin and Zetia
5. Hagens Berman Sobol Shapiro: Judge Orders Double Damages, Issues Stinging Rebuke in Average Wholesale Price Case
6. Rulings Send Lawsuits Against State Farm, American Family Back to Court, Hagens Berman Sobol Shapiro Announces
7. Nationwide Telephone News Briefing for U.S. Health Disparities Forum
8. Purifan Clean Air Wellness System Now Installed in More Than 40 Schools Nationwide
9. Nationwide to Present at Citigroup Global Property CEO Conference
10. CBS Outernet Partners With Lifeclinic International to Bring Interactive Health Programming and Advertising to Pharmacy Locations Nationwide
11. Alzheimers Foundation of America Awards Grants to Local Groups Nationwide
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/26/2016)... (PRWEB) , ... June 26, 2016 , ... PawPaws ... a new product that was developed to enhance the health of felines. The formula ... , The two main herbs in the PawPaws Cat Kidney Support Supplement ...
(Date:6/25/2016)... ... June 25, 2016 , ... Austin residents seeking Mohs surgery services, ... Mohs Surgery and to Dr. Russell Peckham for medical and surgical dermatology. , Dr. ... skin cancer. The selective fellowship in Mohs Micrographic Surgery completed by Dr. Dorsey was ...
(Date:6/25/2016)... ... June 25, 2016 , ... As a lifelong Southern Californian, ... and his M.D from the David Geffen School of Medicine at UCLA. He trained ... Angeles to complete his fellowship in hematology/oncology at the UCLA-Olive View-Cedars Sinai program where ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... A recent ... that most people are unfamiliar with. The article goes on to state that individuals ... also many of these less common operations such as calf and cheek reduction. The ...
(Date:6/24/2016)... ... June 24, 2016 , ... The Pulmonary Hypertension Association ... it will receive two significant new grants to support its work to advance ... 25th anniversary by recognizing patients, medical professionals and scientists for their work in ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... INDIANAPOLIS , June 23, 2016 If ... Leaders Scholarship is any indication, the future is in ... at www.diabetesscholars.org by the Diabetes Scholars Foundation ... the way of academic and community service excellence. ... since 2012, and continues to advocate for people with ...
(Date:6/23/2016)... June 23, 2016 Revolutionary technology ... Oticon , industry leaders in advanced audiology and ... Oticon Opn ™, the world,s first internet connected ... for IoT devices.      (Photo: http://photos.prnewswire.com/prnh/20160622/382240 ... a number of ,world firsts,: , TwinLink™ ...
(Date:6/23/2016)... Pa. , June 23, 2016 The ... in an outpatient dialysis facility.  Treatments are usually 3 ... 6 hours per visit, including travel time, equipment preparation ... a patient, but especially grueling for patients who are ... of a skilled nursing and rehabilitation centers for some ...
Breaking Medicine Technology: