San Francisco-based pharmaceutical distributor McKesson has agreed to pay $18 million to settle allegations that it failed to comply with shipping and handling requirements of its vaccines, thereby violating its contract with the Centers for Disease Control and Prevention.
McKesson's contract with the CDC required the distributor to receive government-purchased vaccines to distribute to healthcare providers. The contract required McKesson to ensure the vaccines were kept at certain temperatures by means of electronic temperature monitors. McKesson allegedly improperly set temperature monitors when shipping vaccines from April 2007 to November 2007, violating the terms of its distribution contract with the CDC, according to a Department of Justice news release.
The government alleges that since McKesson did not set the monitors to the appropriate range, the company submitted false claims to the CDC for their provided shipping and handling services, as it did not adequately carry out its contractual obligations, according to the news release.
The qui tam lawsuit was initiated by Terrell Fox, a former finance director at McKesson Specialty Distribution.
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