SACRAMENTO, Calif. — McKesson Corporation, one of the nation’s largest distributors of pharmaceutical drugs, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA). The settlement resolves allegations that 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.
The nationwide settlement was announced today by U.S. Attorney Phillip A. Talbert, Drug Enforcement Administration Special Agent in Charge John J. Martin and the U.S. Attorneys for 11 other federal districts.
“The abuse of prescription painkillers has become an epidemic,” said United States Attorney Talbert. “The Controlled Substances Act is a tool to assist the DEA with monitoring the movement of prescription drugs and prevent the diversion of powerful drugs to unintended users who may be injured by them. Our office will continue to work with our law enforcement partners to investigate these cases and enforce federal law.”
“Accountability is key for all DEA registrants who distribute controlled substances; detecting and reporting suspicious orders is part of the equation,” said DEA Special Agent in Charge John J. Martin. “DEA is committed to utilizing a variety of tools, which include implementing new methods for accountability, to combat the prescription drug epidemic.”
The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan, and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.
In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that 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.
The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson 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.
This was a multidistrict investigation that involved the following DEA Field Divisions: Boston Field Division, Chicago Field Division, Denver Field Division, Detroit Field Division, Miami Field Division, Newark Field Division, San Francisco Field Division, St. Louis Field Division, and Washington District Office. In addition to the Eastern District of California, the following U.S. Attorney’s Offices participated in the case: Central District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, and Northern District of…
Related Federal Cases
- McKesson Corporation, Failure to Report Suspicious Controlled Subst… · Michigan
- Amgen Pays $71M for Pushing Drugs Off-Label · New York
- Amgen Inc. $71M Settlement · New York
- Loretta E. Lynch, Community Policing Report, Oregon 2017 · Georgia
- McKesson Corp, Failing to Report Suspicious Opioid Orders, USA 2023 · Michigan
Key Facts
- State: California
- Category: Drug Trafficking|White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News