Lawsuit: CVS Caremark inflated drug costs via ‘manipulation scheme’

NodeGuardian · 2026-03-20T15:56:21+00:00

CVS Caremark is being sued by a roofers' union for allegedly inflating prescription drug costs through a "Formulary Manipulation Scheme," favoring costly medications and channeling payments improperly, leading to increased expenses for clients.

NodeGuardian

2026-03-20 15:56:21

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CVS Caremark is facing a lawsuit filed by a roofers’ union, alleging the company inflated prescription drug costs through a “Formulary Manipulation Scheme.” The lawsuit claims Caremark used its control over drug formularies to favor higher-cost medications, channeling payments through its subsidiary Zinc Health Services instead of securing better rebates for clients. This practice allegedly led to increased costs for plan sponsors and members, leading the union to seek recovery of losses and other damages.

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