CVS Dodges $121M Class Action Claim, Thanks to California Jury

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CVS did not overcharge customers buying generic drugs through its discount program, a California federal jury has decided. 

On Wednesday, a unanimous jury cleared the pharmacy chain of claims that it overcharged insured drug buyers by more than $121 million when buying generic drugs, Law360 reported. 

Plaintiffs from six states had alleged that CVS unfairly overcharged them for prescriptions under its nationwide discount program, Health Savings Pass, which has since been discontinued. The plaintiffs alleged the pharmacy violated multiple state consumer protection statutes.

During the trial, jurors were told by Class attorneys that CVS implemented unfair pricing practices that cost its customers more than $100 million over seven years, Law360 reported.

They said CVS did not report discounts to pharmacy benefit managers like OptumRx and Express Scripts, which in turn reported the inflated prices to insurance companies, which determined copays. 

The lead plaintiffs reportedly told the jury they’d been cheated out of lower copays due to CVS. Some said they’d struggled to pay for their prescriptions because of the alleged practice, while others said they were only seeking around $20 in damages.

CVS reportedly countered that, during the program period, 95 percent of insured customers paid less than they would have if the program had not existed.

The jury sided with the pharmacy, clearing it of all claims, and ruling it does not need to pay out 6.3 million customers in New York, Arizona, California, Florida, Illinois and Massachusetts $121 million. 

Meanwhile, CVS is currently being accused — alongside Fruit of the Earth — of reaping millions of dollars of profit at the expense of consumers by exposing them to hidden chemicals in sunscreen it markets as only containing safe mineral ingredients, a new nationwide class action lawsuit alleges. 

What do you think of the outcome of the class action against CVS? Let us know in the comments! 

The plaintiffs are represented by Jonathan Levine of Pritzker Levine LLP, Bonny Sweeney and Theodore F. DiSalvo of Hausfeld LLP, and Robert Gilmore of Stein Mitchell Beato & Missner LLP.

The CVS Generic Drug Discount Class Action Lawsuit is Carl Washington et al. v. CVS Health Corp., Case No. 4:15-cv-03504, in the U.S. District Court for the Northern District of California.

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