The state of Louisiana has settled three lawsuits against CVS Health and its pharmacy benefit manager, Caremark, for $45 million. The defendants used "unfair, deceptive and unlawful" business practices to conduct a text message campaign last year against proposed legislation that would regulate PBMs, one lawsuit alleged.

"These cases involved conduct directly impacting Louisiana citizens," Attorney General Liz Murrill said in a statement. "Rather than prolonging litigation, which could have extended several years, we worked with CVS to reach a resolution that serves the best interests of Louisiana. The funds will be used to further ensure accountability in pharmaceutical pricing and PBM industry practices."

Caremark is the PBM for the Louisiana Office of Group Benefits, which provides prescription drug coverage for most state employees and public school teachers. Pharmacies would have been prohibited from also owning PBMs under a bill that was proposed in last year's legislative session. CVS distributed a text at the time saying it would have to close all of its locations in the state if it were enacted. After the bill was shelved in favor of an alternative transparency measure, Murrill filed three lawsuits against CVS Health last June:

  • The first involved what she said was the improper use of customer information for mass text messages.
  • The second targeted the vertical integration model that gives CVS control of multiple supply chain stages.
  • The third accused CVS of violating Louisiana's Unfair Trade Practices and Consumer Protection Law and placing the state's independent pharmacies at a disadvantage.

CVS Health did not admit any wrongdoing or liability in the settlement.

"We're pleased that we've reached a settlement agreement with the Louisiana attorney    general's office," Amy Thibault, the company's communications director, told the Louisiana Illuminator. "The settlement enables us to maintain our focus on lowering health care costs and providing community pharmacy access to Louisiana residents and is not an admission of liability or wrongdoing."

Murrill said the settlement funds will be used to "implement pharmacy benefit legislation and Medicaid fraud initiatives in collaboration with the inspector general and the Louisiana Department of Health."

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