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Arizona AG accuses drug wholesaler McKesson of inflating prices

Posted by Sarah Showard | Oct 07, 2012 | 0 Comments

Inflation

The Arizona Attorney General's Office filed a lawsuit in Maricopa County Superior Court against McKesson Corp. on September 14, 2012, accusing the nation's largest drug wholesaler of artificially inflating prices of more than 400 brand-name prescriptions. Prescriptions affected include Allegra, Azmacort, Celebrex, Coumadin, Flonase, Lipitor, Neurontin, Nexium, Prevacid and Valium.

Arizona Attorney General Tom Horne said McKesson executives allegedly began scheming in 2000 to raise drug wholesale prices, which increased costs for consumers and businesses including Albertson's, Costco, Safeway, Target, Wal-Mart and Walgreens. Horne said McKesson's actions violate the state's Consumer Fraud Act.

According to the complaint, McKesson allegedly raised the spread between published average wholesale prices and actual acquisition costs to increase profits and then tried to cover up the scheme. The state is seeking civil penalties of up to $10,000 for each violation proven in court.

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About the Author

Sarah Showard

Sarah Showard graduated from the University of Maryland in 1985, Magna Cum Laude with a Bachelor of Arts in English-Linguistics and a Certification in Women's Studies. She then graduated from New York University School of Law in 1988. Sarah began practice initially as an insurance defense attorney, and has been representing plaintiffs since 1990. Sarah has a son, Benjamin, who recently graduated from The Gregory School and will attend ASU in the fall, with future plans to attend law school and eventually join Showard Law Firm. In her spare time Sarah enjoys horseback riding and spending time in Sonoita with her husband Peter.

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