Horne: Scheme inflated prices of 400 prescription drugs

PHOENIX (CBS5) -

The nation's largest drug wholesaler is the target of an Arizona lawsuit alleging the company artificially inflating the prices of more than 400 brand-name prescription drugs, costing consumers millions of dollars.

The complaint wasfiledon Fridayin Maricopa County Superior Court againstMcKesson Corporation, alleging it violated Arizona's Consumer Fraud Act. [Click here to read the entire complaint (PDF)]

Among the drugs that are alleged to have been marked-up inappropriately are:

The complaint alleges that several of McKesson's executives constructed a scheme beginning in 2000 to mark up the average wholesale price of many prescription drugs, resulting in higher prescription costs for Arizona businesses and consumers.

Thesuit specifically alleges that McKesson raised the spread between the published average wholesale price and the actual acquisition costs in an effort to increase profits for its pharmacy customers, Horne said.Those prices were passed along, the complaint alleges, to third-party payors and consumers.

McKesson distributes pharmaceuticals to retailers including Albertson's, Costco, Safeway, Target, Walmart and Walgreens.

McKesson controls approximately one-third of the national wholesale drug distribution market.

The complaint seeks civil penalties of up to $10,000 against McKesson for each violation of the Consumer Fraud Act, as well as restitution.

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Horne: Scheme inflated prices of 400 prescription drugs