Considering the potential impacts of the First DataBank litigation, which easily reach the billions of dollars, and the evidence that two companies with big footprints in San Francisco (Hearst, which owns the Chronicle, and McKesson, one of the city's biggest corporations) may have conspired to cheat consumers, this story has gotten very little press coverage.

And the news reports that have run have missed some major points.

The suit, brought by a group of unions scattered over the northeastern United States, charges that McKesson Corp, and First DataBank, a publication owned by Hearst, conspired to artificially and arbitrarily raise prescription drug prices costing health plans (such as the ones maintained by the plaintiffs' unions), private insurers and state Medicaid offices approximately $7 billion between 2001 and 2005.

Pharmaceutical industry publications have covered the news, but otherwise, it has been relegated to the business press (the Hearst-owned Chronicle caught up to the story weeks after the plaintiffs proposed a settlement deal with First DataBank and dumped it in the business section).

When such stories are assigned to a business reporter, they can take a different dimension. The business press has a tendency to focus on how this type of litigation might negatively impact Wall Street -- rather than emphasizing how class-action suits are a tool for consumers to pursue relief when they believe Big Pharma (or any major corporation for that matter) has broken the law.

Some flaws in the coverage and facts that the press hasn't played up are listed below:

* A McKesson spokesperson told the Chronicle that the company "would certainly support a move away from [average wholesale price] that created a more logical and stable reimbursement structure for all parties in the health-care system." But the plaintiffs contend, relying on an untold number of internal e-mails and memos obtained by their attorneys, that McKesson and First DataBank both knew exactly what was going on and actively worked to keep it a secret. McKesson flat-out denies it knew anything about what was happening to First DataBank's published average wholesale price. But according to one e-mail cited in legal papers, the alleged scheme was so controversial that the two companies scorned drug producers who smelled legal trouble after becoming aware of it and attempted to back away.

* McKesson today is still working to recover from a $9 billion accounting scandal that in 1999 led four executives from a subsidiary to plead guilty to conspiracy and securities fraud and nearly landed two more behind bars before a federal jury deadlocked on three charges with a single holdout vote. U.S. Attorney Kevin Ryan has not yet announced whether his office will attempt to retry the two men.

* In 1998, the Federal Trade Commission blocked attempted mergers by the nation's four largest drug wholesalers, which would have reduced the number to two. McKesson wanted to acquire the company AmeriSource Health Corp., and a company called Cardinal Health attempted to acquire Bergen Brunswig Corp. AmeriSource and Bergen did, however, ultimately merge with one another bringing the number of major wholesalers to just three. Even though the original deal was stopped, McKesson quietly revealed in 2005 through a Securities and Exchange Commission filing that the FTC had requested documents ...