Federal court approves $350 million RICO case settlement

Posted on April 28, 2009 by Thomas Walker

A federal court in Massachusetts approved a $350 million settlement. The case alleged a drug wholesaler of inflating drug prices.

Consumers brought the lawsuit against McKesson and FirstDataBank to recover some of their money back.

FirstData is a publisher of drug pricing information. The sole drug manufacturer the FirstData surveyed was McKesson. The two marked up the average price of certain drugs from 20 to 25 percent.

The suit alleged that McKesson and FirstData violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”). The complaint alleged that the companies used interstate mail to fraudulently raise the average price of McKesson’s drugs.

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