CVS Caremark Settles Whistleblower Suits

By Martin & Jones on October 19, 2012

CVS Caremark has settled whistleblower suits involving claims in California, Florida, and Illinois for $19.9 million.

The California qui tam (“whistleblower”) lawsuit was brought by two Caremark pharmacists who became aware of fraudulent practices that resulted in overpayments by the California Public Employees Retirement System. The practices included improperly reselling returned drugs, changing plan members’ submitted prescriptions, and manipulating and falsely reporting to the State of California how long it took to provide plan members’ prescriptions in order to avoid paying penalties.

The pharmacists also brought whistleblower suits on behalf of Florida and Illinois, claiming that CVS Caremark engaged in similar fraudulent conduct which resulted in losses to those states. The parties reached a global settlement of $19.9 million.