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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
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SOURCE Hagens Berman Sobol Shapiro
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