McKesson Settles Medicaid Drug Lawsuit With Virginia for $37 Million

The Office of the Attorney General for the Commonwealth of Virginia Oct. 18 announced a $37 million Medicaid fraud settlement with McKesson Corp., following allegations that the company conspired to inflate wholesale drug prices on more than 400 brand-named prescription drugs for Virginia Medicaid patients (Commw. of Va. v. McKesson Corp.).

Virginia Attorney General Ken Cuccinelli filed a complaint in June 2011 that McKesson was publishing inflated average wholesale price (AWP) information, resulting in inflated drug payments from Virginia’s Medicaid program.

In a statement, Cuccinelli said, “This $37 million recovery shows that we will not tolerate Medicaid fraud ...