Michigan is suing San Francisco-based drug and medical products distributor McKesson Corp. and Hearst Corp., saying they conspired to artificially inflate wholesale prices and cost the state millions of dollars in Medicaid reimbursements.
Michigan Attorney General Bill Schuette alleged that McKesson and Hearst, which owns First DataBank Inc. of South San Francisco as well as the San Francisco Chronicle, violated the Michigan Medicaid False Claims Act by knowingly publishing false average wholesale prices for certain medicines from late 2001 through September 2009.
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