Oakland County Executive L. Brooks Patterson announced last week that the county has recovered $362,018.02 on behalf of taxpayers from a large drug wholesaler that conspired to inflate the price of prescription drugs, according to a release issued last week.
Drug wholesaler McKesson, and First Data Bank, a publisher of drug data, were the targets of a class action lawsuit brought by Oakland County and others alleging that the two companies wrongfully inflated the mark-up factor that determines the average wholesale price of prescription drugs. Their actions resulted in many municipal governments, including Oakland County, to overpay on more than 400 brand name prescription drugs between 2001 and 2006.
The county was one of 1,128 valid claimants against McKesson and First Data Bank. The defendants paid $82 million into a fund for distribution to claimants as part of the class action settlement – the average payment was $55,746.90. Additional information regarding the resolution may be found here.
Mr. Patterson said the county’s Corporation Counsel, Human Resources Department and outside counsel, Sommers Schwartz, worked together to determine the damages against the county and recover the money.
“Our Corporation Counsel, Human Resources Department and outside counsel did an outstanding job,” Patterson said. “Oakland County has a reputation for fiscal excellence because we always fight for the best interest of our taxpayers.”
We thank Mr. Patterson for his comments, and are proud to have partnered with the county in this very important case.