Three major hospital systems filed federal lawsuits against CVS Health and several of its affiliates alleging the companies improperly diverted approximately $250 million in savings generated through the federal 340B Drug Pricing Program between 2020 and 2025. The lawsuits, filed by Frier Levitt, allege that CVS concealed reimbursement practices involving 340B specialty drug claims and improperly retained funds intended to support care for low-income and underserved patient populations.
In an article published in The American Journal of Managed Care (AJMC), Frier Levitt co-managing partner Jonathan Levitt discussed the allegations and the broader implications surrounding transparency and accountability in specialty pharmacy and PBM contracting arrangements.
“Concealment changes the legal calculus significantly…CVS didn’t just allegedly breach these contracts. We allege they went to significant lengths to make sure our clients never found out.”
Co-Managing Partner
