Class-action status on drug suit sought

Douglas County Commissioners and other public entities across the country have asked a federal judge in Massachusetts to consolidate their drug pricing lawsuits against McKesson Corp. and another company into a class-action lawsuit.

The plaintiffs claim the two companies fraudulently manipulated the average wholesale price of prescription drugs, which influenced how much governments paid as part of benefits plans and other programs, according to court documents.

Douglas County Commissioners in August agreed to file a lawsuit alleging that McKesson and First DataBank Inc. unfairly marked up wholesale drug prices in 2008 and several years before. Other entities asking to be part of a class-action lawsuit include the state of Oklahoma and city governments in Baltimore and Columbia, S.C.

In November, McKesson, a San Francisco-based company, announced a $350 million settlement in a similar lawsuit by private companies. The company also said it would set up a reserve for outstanding and expected future claims by public entities, estimated at $143 million.

John H. Hammergren, McKesson’s chairman and chief executive officer, has said the allegations lacked merit but the company agreed to the settlement in the private case because of uncertainty with the litigation process.