LAWSUITS NEWS & LEGAL INFORMATION
Drug Manufacturer Rebates
East bay, CA: (Feb-14-08) A multi state lawsuit was brought against Caremark Corp. by state attorney generals, alleging that the prescription management company convinced doctors to switch patients to different brands of drugs in exchange for rebates from manufacturers. Caremark provides prescription drug services to some 2,000 health care plans nationwide. The suit claimed that the company told doctors that switching drugs saved patients money even when this was not the case, and that it encouraged drug manufacturers to market drugs to certain physicians. Court records reveal that Maryland and Illinois led the investigation into Caremark's drug-switching practices. Participating states included Arizona, Arkansas, California, Connecticut, Delaware, District of Columbia, Florida, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nevada, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia and Washington.
Officials on both sides said that the parties had reached a settlement in which Caremark has agreed to pay $38.5 million as part of the deal resolving allegations. Under the terms of the settlement, Caremark will pay $22 million total to attorney generals who participated in the investigation; the money will be distributed proportionally based on state's population. It will also pay the states a total of $16.5 million to cover attorney and litigation fees, consumer education and litigation costs. $2.5 million will be paid to reimburse affected consumers, up to $25 for out-of-pocket expenses incurred as a result of a drug-exchange program involving statins, a class of cholesterol lowering drugs. Charities in California that provide for the elderly and low income will receive $3.4 million as part of the deal. [EAST BAY BUSINESS TIMES: DRUG REBATES]
Published on Feb-17-08
Officials on both sides said that the parties had reached a settlement in which Caremark has agreed to pay $38.5 million as part of the deal resolving allegations. Under the terms of the settlement, Caremark will pay $22 million total to attorney generals who participated in the investigation; the money will be distributed proportionally based on state's population. It will also pay the states a total of $16.5 million to cover attorney and litigation fees, consumer education and litigation costs. $2.5 million will be paid to reimburse affected consumers, up to $25 for out-of-pocket expenses incurred as a result of a drug-exchange program involving statins, a class of cholesterol lowering drugs. Charities in California that provide for the elderly and low income will receive $3.4 million as part of the deal. [
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