McKesson Corp., a U.S.-based drug wholesale company, has agreed to settle a suit brought by 30 states that claimed the pharmaceutical company lied about the prices of its drugs. The company will pay $151 million to the states, putting an end to the case.
According to the suit, McKesson inflated the price of 1,400 drugs it reported to First DataBank, the publisher Medicaid uses to set payment rates for its pharmaceutical reimbursements. Because of the false information McKesson provided, the suit said, Medicaid significantly overpaid for the drugs.
"This settlement holds McKesson accountable for attempting to make millions of dollars in illegal profits," New York Attorney General Eric Schneiderman said in a statement. New York and California led negotiations with McKesson on behalf of all 30 states.
New York will receive $64 million in the settlement—more than any other state. In agreeing to the settlement, McKesson denied any wrongdoing.
Read more about this suit on Reuters.