.jpg)
7 hours ago
1
Article content
NEW ORLEANS (AP) — Louisiana filed several lawsuits accusing pharmaceutical giant CVS of abusing customer information and using its dominant market position to drive up drug costs and unfairly undermine independent pharmacies, the state’s attorney general said Tuesday.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Attorney General Liz Murrill began investigating CVS after the company sent out mass text messages to thousands of residents on June 11 to lobby against legislation that took aim at its business structure. The texts warned that medication costs could go up and all CVS pharmacies in the state would close.
Article content
Article content
Article content
The lawsuits, which were filed Monday in central Louisiana’s St. Landry Parish, seek “injunctive relief, civil penalties and restitution,” Murrill said.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
CVS “abused customers’ sensitive information to push a political message,” Republican Gov. Jeff Landry said Tuesday at a press conference.
Article content
He noted CVS had lobbied his wife over text via the same messaging chain normally used to notify her about picking up a prescription drug or other healthcare-related matters.
Article content
One lawsuit argues that the text message lobbying constituted “unfair or deceptive acts” in violation of state trade law. Two Louisiana-based law firms have filed a separate class action lawsuit against CVS over the text messages.
Article content
CVS has denied any wrongdoing.
Article content
“Our communication with CVS customers, patients and members of the community was consistent with the law,” CVS said in an emailed statement. “We believe it was important for people to know about a potential disruption to where they get their medicine.”
Article content
Two other lawsuits allege that CVS artificially inflates prices for consumers and independent pharmacies.
Article content
Article content
CVS serves as a pharmacy benefit manager — essentially an intermediary that buys medication from manufacturers and distributes drugs to pharmacies.
Article content
CVS and the mail-order pharmacy Express Scripts dominate the market by processing about eight out of every 10 prescription drug claims, according to the Federal Trade Commission, which warned in a 2024 report that this allows for “inflating drug costs and squeezing Main Street pharmacies.”
Article content
Because CVS also owns a vast network of retail pharmacies _ including 119 in Louisiana — it sets the terms for how prescription drugs are sold to customers there.
Article content
The proposed law that sparked the text messages from CVS had sought to ban pharmacy benefit managers like CVS from owning drug stores. The law failed to pass, but Landry has stated he will seek to revive it.
Article content
In the state’s litigation, Murrill alleges that CVS business structure and practices allow the company to “manipulate prices, restrict competition and channel profits internally.”
Article content
One lawsuit accuses CVS of “systematically under-reimbursing independent Louisiana pharmacies to the point of economic hardship, while routing patients to CVS-owned facilities.” The lawsuit alleges that CVS imposes “unethical, unscrupulous, and exorbitantly high fees on independent pharmacies.”
English (US)