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.
Steve is the Managing Shareholder of Steven J. Klearman & Associates, a civil litigation law firm located in Reno, Nevada. He practices primarily in the areas of civil litigation and injury law, and has authored one of the definitive guides to Nevada civil law that is widely used by Nevada judges and attorneys, his book entitled Elements of Nevada Legal Theories.