Third-Party Payor Home Page

If You Are A Third-Party Payor And Made
Reimbursements For Certain Drugs,

You May Be Able To Receive a Substantial Payment
From A Proposed Class Action Settlement

What is the Lawsuit About?

Prescription drug payments are often based on list prices, or benchmarks. The most common pricing benchmark used to reimburse brand prescription drugs is the Average Wholesale Price or "AWP." Several companies, including FDB and Medi-Span, publish the AWP of prescription drugs in printed and electronic databases. During the time period of this lawsuit, FDB often determined the AWP for many drugs by using a "mark-up factor." The lawsuit claims that FDB and McKesson unlawfully conspired to inflate the mark-up factor, thereby wrongfully increasing the published AWP for many drugs. According to the lawsuit, this in turn, increased the prices paid by TPPs that used FDB as the source for AWP for the Subject Drugs (a complete list of those prescription drugs is listed in the link on the left). McKesson denies any wrongdoing and is settling this lawsuit to avoid further litigation.

How do I know if I am included in the Proposed Settlement?

You are a member of the Settlement Class if you are a TPP that reimbursed for prescription drugs based on the BBAWP published by FDB or the AWP published by Medi-Span. Additionally, you must have purchased the Subject Drugs between August 1, 2001 through March 15, 2005.

A TPP is an entity that is:

• A party to a contract, issuer of a policy, or sponsor of a plan, and
  
  
• At risk, under such contract, policy, or plan, to pay or reimburse all or part of the cost of prescription drugs dispensed to covered natural persons. TPPs include insurance companies, union health and welfare benefit plans and self-insured employers. Entities with self-funded plans that contract with a health insurance company or other entity to serve as a third-party claims administrator to administer their prescription drug benefits qualify as TPPs. Private plans that cover government employees and/or retirees are also included.

Excluded from the Proposed Settlement are the Defendants and their present or former, direct and indirect, parents, subsidiaries, divisions, partners and affiliates; and the United States government, its officers, agents, agencies and departments; the States of the United States and their respective officers, agents, agencies and departments; and all other local governments and their officers, agents, agencies and departments. Also presumptively excluded from the Class are those entities that own or operate businesses referred to commonly as pharmacy benefit managers (“PBMs”). These PBMs, as part of their business operation, contract with Third-Party Payors to perform certain services in the administration and management of prescription drug benefit plans and are not members of the Class unless they are the fiduciary of the Third Party Payors or by contract assumed, in whole or in part, the insurance risk of that prescription drug benefit during the period from August 1, 2001 through March 15, 2005.

What does the Proposed Settlement provide?

McKesson will pay $350 million to settle the lawsuit, of which up to $288,000,000 will be shared by TPPs. Under the Agreement, 82.52% of the net Settlement Amount will be designated to satisfy the claims of TPPs and 5.97% of the net Settlement Amount will be designated for the purpose of paying the claims of consumers who made co-payments. The remainder will be designated to pay the claims of cash payor consumers.

How do I file a claim?

The official court-ordered deadline for filing a claim has passed. Claims needed to be postmarked by July 9th, 2009. However, if you still wish to file a claim, you should do so as soon as possible. Your claim will be marked as “late” and ultimately the court will decide whether or not to accept it as eligible for payment. Mail your completed Claim Form to:

As part of your claim, you must provide the electronic backup information and certifications requested on the Claim Form.

Is it possible to exclude myself from the Proposed Settlement?

It is no longer possible to exclude yourself from the Class or the Proposed Settlement made on behalf of the TPP Class. Notice of this lawsuit and the claims against McKesson was previously provided to potential members of the TPP Class. If you provided the Settlement Administrator with written notification of your intent to exclude yourself from the Class litigation on or before November 15, 2008, you will be excluded from the Proposed Settlement unless you timely advised the Settlement Administrator that you wanted to opt back into the Class. However, the deadline for opting back in has passed. Opt-in letters needed to be postmarked by June 3rd, 2009.

IMPORTANT: THIS SITE IS SUPERVISED BY THE COURT AND IS ADMINISTERED BY AN ADMINISTRATION FIRM THAT HANDLES ALL ASPECTS OF NOTICE AND CLAIM PROCESSING. THIS IS THE ONLY AUTHORIZED WEB SITE FOR THIS LITIGATION. PLEASE DO NOT RELY UPON OTHER SITES THAT SET OUT DIFFERENT AND UNAUTHORIZED INFORMATION.