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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Average Wholesale Price (AWP) Lawsuit

A class-action lawsuit filed in federal court in Massachusetts against McKesson Corporation alleges McKesson and pharmaceutical data publishing company First DataBank entered into a secret agreement to artificially inflate the average wholesale price (AWP) of hundreds of brand-name drugs. The government uses average wholesale prices as reported by drug companies to set reimbursements from federal health programs. The lawsuit was filed on behalf of healthcare consumers and third-party payors who allegedly overpaid for drugs by billions of dollars. In November 2008, McKesson agreed to settle all private party claims for $350 million. The settlement terms, which are subject to final court approval, include an express denial of liability. Claims made by public entities, including federal, state and local governments, remain pending. See related McKesson pending instance, “Connecticut Drug Prices Lawsuit.”

Misconduct Type
Antitrust
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Filing
6/2/2005
Contractors Involved Penalty
Total
McKesson $350,000,000
Further Information Released
Settlement 4/24/2009
McKesson Press Release 12/6/2008
Complaint 9/6/2007

See also:

Federal Contractor Misconduct Database