The Whistleblower Institute announces that McKesson Corporation reached a $150 million settlement in a False Claims Act Allegations lawsuit over violation of the Controlled Substances Act (CSA).
Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute at email@example.com or call: 619-452–1218.
According to the Department of Justice, allegedly McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers – i.e., orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.
For example, in Colorado, McKesson allegedly processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.
Reportedly, as part of the settlement, McKesson will have to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for several years. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system. Additionally, the government and McKesson agreed to enhanced compliance terms for the next five years. Also, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms and require to engage an independent monitor to assess compliance.
Based in San Francisco, California, McKesson Corporation is an American company distributing pharmaceuticals at a retail sale level and providing health information technology, medical supplies, and care management tools.
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Those who have a similar case or experienced a similar situation or any other wrongdoing within a corporation have certain options and should contact the Whistleblower Institute.
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