FoxMeyer Health Files Suit Against McKesson

FoxMeyer Health Corp. said it is suing McKesson Corp. of San Francisco and a dozen major pharmaceutical manufacturers for allegedly conspiring to drive its FoxMeyer Drug Co. unit out of business. In the suit filed in U.S. District Court in Texas, closely held Carrollton, Texas-based FoxMeyer seeks compensatory damages of more than $400 million and punitive damages that could exceed $1 billion. FoxMeyer said the suit alleges that McKesson “misused confidential financial and competitive information to which it had gained access in conceiving, perpetrating and promoting a plan to drive FoxMeyer out of its industry.” FoxMeyer Drug, a drug distributor, filed for Chapter 11 bankruptcy protection in August. The major drug makers named in the suit are suppliers to FoxMeyer Drug. McKesson shares lost 75 cents to close at $52.625 on the New York Stock Exchange.