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Steven J. Klearman
Steven J. Klearman
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Lawsuit Against CVS for Overcharging for Generic Drugs

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CVS national pharmacy chain is being sued by pharmacy customers for “intentionally overcharging for generic prescription drugs,” according to a lawsuit filed earlier this month in California.

The alleged claims date back as far as 2008. The pharmacy chain is accused of “orchestrating a massive fraud that resulted in substantial ill-gotten gains,” the complaint reads. The pharmacy, in some instances, charged three to four times the customary price for generic drugs.

The pharmacy’s program, known as Health Savings Pass, is a discount program for cash-paying patients not insurance plan and is at the center of the suit. Customers paying for prescriptions through third-party plans pay higher than those that are paying cash, the suit alleges.

The customer loyalty program costs $15 a year to join and offers customers 90-day supplies of some generic drugs for $11.99, according to the company’s website.

The suit seeks class-action status to represent other customers, and also unspecified damages along with a court order to block the alleged scheme from continuing.

CVS is the second-largest pharmacy chain in the U.S. with Walgreens being first.