SACRAMENTO, Calif. — McKesson Corporation, one of the largest pharmaceutical distributors in the U.S., has agreed to pay a record $150 million civil penalty after repeatedly failing to report suspicious orders of controlled substances, including oxycodone and hydrocodone, directly feeding the nation’s opioid epidemic. The Justice Department says the company flouted the Controlled Substances Act for years, ignoring red flags as millions of addictive painkillers flowed to pharmacies with questionable ordering patterns.
The settlement, announced by U.S. Attorney Phillip A. Talbert and DEA Special Agent in Charge John J. Martin, marks the largest penalty ever levied under the CSA for failure to monitor and report suspicious drug distribution. The deal also forces McKesson to suspend controlled substance sales from major distribution centers in Colorado, Ohio, Michigan, and Florida for multiple years—punishments described as the harshest ever imposed on a DEA-registered distributor.
Despite a 2008 agreement that penalized McKesson $13.25 million for identical violations, the company again failed to implement an effective monitoring system. Between 2008 and 2013, McKesson shipped increasing volumes of opioids to U.S. pharmacies, yet reported only 16 suspicious orders nationwide—just one of which wasn’t tied to a terminated customer. In Colorado alone, the company processed over 1.6 million orders but flagged almost none, even as warning signs mounted.
“The abuse of prescription painkillers has become an epidemic,” said U.S. 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.” He vowed continued federal crackdowns on distributors who ignore their legal and moral responsibilities.
DEA Special Agent Martin emphasized accountability: “Detecting and reporting suspicious orders is part of the equation.” The agency will now oversee a strict compliance regime, including the appointment of an independent monitor—the first ever in a CSA civil penalty case—to audit McKesson’s operations for the next five years. The company must also boost staffing, implement rigorous internal audits, and face stipulated financial penalties for future failures.
The investigation spanned DEA field offices in Boston, Chicago, Denver, Detroit, Miami, Newark, San Francisco, St. Louis, and Washington, D.C., with cooperation from U.S. Attorneys in California, Colorado, Florida, Kentucky, and others. The case reveals systemic failures at the highest levels of pharmaceutical distribution—and a pattern of corporate disregard that regulators say can no longer go unchecked.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Drug Trafficking
- Source: Official Source ↗
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