McKesson Corp. v. Ariz. Health Care Cost Containment Sys. 230 Ariz. 440, 286 P.3d 784 (Ariz. Ct. App. 2012)

The Arizona Health Care Cost Containment System brought an action against McKesson under the False Claims Act, seeking to impose a civil penalty and an assessment of more than $212 million against the company. However, under rules promulgated by the AHCCCS, the agency had limited its relevant enforcement action to “providers and non-contracting providers,” a category that did not properly include McKesson. Quarles & Brady successfully petitioned the Superior Court in Maricopa County to grant declaratory and injunctive relief preventing the AHCCCS from enforcing the penalty and assessment against McKesson in excess of its authority. After the AHCCCS appealed, Quarles & Brady successfully defended the judgment at the Court of Appeals, protecting McKesson from more than $212 million in penalty costs.

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