Lawsuit in California accuses CVS of overcharging some pharmacy customers for generic drugs

Markets Associated Press

A lawsuit accuses CVS of deliberately overcharging some pharmacy customers for generic drugs by submitting claims to their insurance companies at inflated prices.

Continue Reading Below

The suit filed Thursday in federal court in San Francisco says those inflated prices led to higher co-pays for customers that exceeded what they would have paid for the drugs if they had no insurance and participated in a CVS discount program.

The lawsuit seeks class-action status, a court order prohibiting CVS Health Corp. from engaging in the alleged fraudulent behavior, and unspecified damages.

CVS spokesman Michael DeAngelis said the Rhode Island-based company had not been served with the lawsuit, so he couldn't comment. But he said co-pays are determined by a patient's insurance, and a similar suit in Massachusetts was dismissed.