McKesson Corporation (NYSE:MCK) stock was down today following a 60 Minutes report on the company.
The new 60 Minutes report on McKesson Corporation has to do with the current opioid crisis in the U.S. The report includes an interview with former members of the Drug Enforcement Administration (DEA).
During the interview with the former DEA employees, they reveal that he organization was going to go after McKesson Corporation for its contribution to the opioid crisis. However, the organization backed down due to internal pressure and fear that its lawyers couldn’t challenge McKesson Corporation’s own legal team.
Some of the accusation made against McKesson Corporation by the former DEA employees include how it was distributing prescription pills. This includes claims that the company wouldn’t report suspicious amounts of orders for opioids.
According to David Schiller, former leader of the DEA team investigating McKesson Corporation, the company would increase its order thresholds to avoid reporting suspicious activity. This resulted in the company allegedly sending massive amounts of the drug to small town pharmacies that had no need for that much.
Schiller was hoping to take McKesson Corporation to court and hit it with a $1 billion fine. Instead, the company agreed to pay a $150 million fine in a settlement. Schiller says this isn’t much of a punishment for a company that makes almost $200 billion a year in revenue. It’s CEO has a yearly salary of $100 million, reports CBS News.
MCK stock was down 1% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.