District Court Gives Final Approval to $350 Million RICO Settlement with McKesson Corporation
WW announces that Judge Patti B. Saris of the United States District Court for the District of Massachusetts has granted final approval of a $350 million settlement with McKesson Corporation, one of the “Big 3” pharmaceutical wholesalers and a Fortune 20 company. WW is co-lead counsel in the action.
In approving the settlement, the Court rejected the objections filed to the settlement outright and noted the “near-unanimous, eye-popping” support for the settlement. The Court found that the allocation, which gave $288,675,000 to third-party payors, $20,900,000 to co-pay consumers and $40,425,000 to cash payors, was reasonable. She likewise found that the notice plan devised by Plaintiffs was “innovative, expansive and reasonable.”
The Court also awarded Class Counsel $70 million in attorneys’ fees, or 20% of the $350 fund created by the settlement. It found that “Plaintiffs’ counsel have been excellent in this complex, hard-fought litigation and innovative in its notice program and efforts to find class members.”
The lawsuit alleged that, beginning in August 2001, McKesson conspired with First DataBank Corporation (“FDB”) to increase the spread between Average Wholesale Price (“AWP”) and Wholesale Acquisition Cost (“WAC”) for over 400 brand name drugs, including blockbuster drugs like Lipitor.
For a copy of the order granting final approval, please click here.