On April 26, 2012, the Department of Justice announced that the drug wholesaler McKesson Corporation agreed to pay $187 million to resolve allegations that the company violated the False Claims Act.  The United States alleged that McKesson caused Medicaid programs to overpay for prescription drugs by reporting inflated Average Wholesale Price information from 2001 to 2005.  The allegations were made as a part of a qui tam lawsuit filed in the United States District Court for the District of New Jersey by Relator David Morgan.  See U.S. ex rel. Morgan v. Express Scripts, Inc., et al., Civil Action No. 05-1714 (D.N.J.)  The settlement resolves the federal share of Medicaid damages, but the implicated states have not yet resolved their claims against McKesson based on their respective shares of the damages.  The settlement agreement provides that the settlement is not an admission of liability and McKesson denies any wrongdoing.  To read the Department of Justice's press release, click here. PeterLeininger