News

District Court Certifies Class of Consumers and Third-Party Payors Against McKesson Corporation

Judge Patti B. Saris of the United States District Court for the District of Massachusetts today issued an order certifying a class of third-party payors and a class of consumers who paid percentage co-pays for over 400 brand-name drugs. The case, in which WW is co-lead counsel, alleges that in late 2001 Defendant McKesson Corporation ("McKesson") illegally inflated the average wholesale price ("AWP") for numerous prescription drugs. Plaintiffs have alleged that McKesson's actions caused the Class billions of dollars in damages.

In certifying the Class, the Court rejected McKesson's argument that third-party payors knew about McKesson's scheme during the time period the Court certified. The Court found that "the typical TPP did not successfully negotiate contract terms to 'clawback' against the hike until 2004." It likewise held that "McKesson has not pointed to any evidence of significant pushback prior to 2004."

The Court certified a class of third-party payors for damages from August 1, 2001 to December 31, 2003. The third-party payor class is certified for equitable relief through May 15, 2005. The Court certified the consumer co-pay class for damages through May 15, 2005. For a copy of the certification order click here.

On the same day the Court entered an order denying McKesson's motion to dismiss Plaintiffs' claims that McKesson's scheme caused injury to cash payors, or U&C payors. For a copy of that order click here.