CVS Caremark Agrees To Pay $20 Million To Settle With Three States For Pension Fraud Claims

CVS Caremark Corporation has agreed to pay about $20 million to settle lawsuits in three states about alleged pension system fraud. The lawsuits were filed by two whistleblowers, CVS pharmacists, and claimed that CVS resold returned drugs, changed presecription orders to increase prcies, and filed false reports about prescriptions fulfilment dates. The Los Angeles Times reported:

"... CVS Caremark will pay nearly $7 million to the California Public Employees’ Retirement System, $4 million to the state of Illinois and $3 million to the state of Florida. Other money from the settlement went to plaintiff attorneys’ fees and costs..."

In 2007, CVS Corporation merged with Caremark Rx Inc.. The combined company operates about 7,000 retail stores, and provides prescription drug management services for employers.

Crain's Chicago Business reported Michael Leonard, a partner with Chicago-based law firm Meckler Bulger Tilson Marick & Pearson LLP, which along with Los Angeles-based law firm Engstrom Lipscomb & Lack LLP represented the whistleblowers, as describing the lawsuit:

“They fought the thing tooth and nail, and denied, denied, denied, despite what the evidence was...”

Comments

[Peter Garcia]

I heard a similar story in chicago about re labeling expired medicine and reselling it for half the cost. BUSTED!!! they also got caught.

[Dev]

This is one of the more scandalous cases of our lifetimes. Sick to think that people even considered this

[Dallas shredding]

For senior citizens and newly retired individuals, they rely on pension claims for their daily needs. It is sad to know that even their medical and pension policies are being threatened by heartless fraudsters. This reminds us to be vigilant especially when it comes to our savings and benefits.