McKesson Pays Record $150 Million for Ignoring Opioid Red Flags

WHEELING, WEST VIRGINIA – McKesson Corporation, one of the nation’s largest pharmaceutical distributors, is shelling out a staggering $150 million to settle civil penalty claims related to its role in the opioid epidemic. The Department of Justice and the Drug Enforcement Administration are calling the settlement “historic and unprecedented,” a clear signal that someone is finally being held accountable for the flood of pills that ravaged communities across the country.

Acting United States Attorney Betsy Steinfeld Jividen didn’t mince words: “The settlement with McKesson… illustrates the coordinated response we are taking in addressing the prescription narcotics crisis in West Virginia and puts those who play a significant role in supplying narcotic medications in our district on clear notice that they must comply with the law.” The feds allege that between 2008 and 2012, McKesson’s Landover, Maryland facility consistently failed to flag and halt suspicious orders for highly addictive Schedule II and III controlled substances, many destined for pharmacies right here in the Northern District of West Virginia.

These weren’t just paperwork errors. According to Jividen, many of those suspicious orders ended up diverted for “illegal use and abuse.” The investigation was initially sparked by a $2 million civil penalty settlement with Judy’s Drug Store in Grant County, West Virginia, back in 2014. That probe, Jividen revealed, “led to the investigation of McKesson and the settlement announced today.” It’s a grim reminder that the roots of this crisis run deep, and often trace back to systemic failures within the supply chain.

DEA Special Agent in Charge Karl C. Colder laid bare the devastating consequences. “The abuse of prescription drugs has rampantly spread throughout our communities,” he stated, connecting the oversupply directly to the surge in heroin addiction and overdoses. “This abuse has directly resulted in the escalation of heroin addiction and related overdoses.” Colder emphasized that McKesson’s failure to adhere to DEA record-keeping requirements is unacceptable, and that the agency is committed to holding all distributors accountable.

The penalties don’t stop at the $150 million fine. McKesson will be forced to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan, and Florida for multiple years – a severe blow to the company’s operations. This isn’t the first time McKesson has been caught in this type of misconduct. In 2008, they paid a $13.25 million civil penalty for similar violations. The government alleges that McKesson designed a compliance program after that settlement, but then failed to fully implement it. From 2008-2013, the company flooded pharmacies with oxycodone and hydrocodone, even after promising to improve oversight.

The evidence is damning. In Colorado, McKesson processed over 1.6 million orders for controlled substances between June 2008 and May 2013, but only reported 16 as suspicious – and those were all linked to a single, terminated customer. This settlement is a start, but it’s just one piece of a much larger puzzle. The fight against the opioid crisis is far from over, and Grimy Times will continue to expose the players who profited from pain and addiction.

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