Rx drug distributor agrees to pay penalties

Deseret News (Salt Lake City), May 8, 2008 by Associated Press

One of the nation's largest distributors of pharmaceutical drugs has agreed to settle allegations that it violated the law when it failed to report suspicious drug sales to the DEA out of several distribution facilities, including one in Utah.

McKesson Corp. has agreed to pay $13.25 million in civil penalties to settle allegations that it failed to report the sale of controlled substance pharmaceuticals to illegal Internet pharmacies who sell the drugs online to people who have no legal prescription, according to the U.S. Department of Justice.

The company operates 30 Drug Enforcement Administration- registered distribution facilities across the country. Among the civil penalties collected, $544,000 will be paid to settle claims in Utah.

DOJ officials say McKesson's facilities filled hundreds of suspicious orders placed by pharmacies participating in illicit Internet schemes and then failed to report the orders to the DEA. The company is accused of continuing the practice, even after company officials met with DEA officials in September 2005 and were warned.

According to the DOJ, the settlement agreement is neither an admission of liability by McKesson nor a concession by the U.S. government that its claims were not well founded.