Pharmacy and prescription drug management company CVS Caremark Corp. has agreed to pay nearly $20 million to settle three lawsuits involving allegations that it defrauded pension systems in three states, including California's giant pension fund, attorneys said.
The whistle-blower lawsuits, filed by two former CVS Caremark pharmacists, accused the company of reselling returned drugs, changing prescription orders to make them more expensive and submitting false reports about how long it took to fill prescriptions.
Under terms of the settlements, CVS Caremark will pay nearly $7 million to the California Public Employees' Retirement System, $4 million to the state of Illinois and $3 million to the state of Florida. Other money from the settlement covered plaintiff attorneys' fees and costs, the attorneys said in a news release.
The former CVS Caremark workers filed the lawsuits under state laws that encourage employees to expose fraud that victimizes government agencies. Typically, whistle-blowers receive a portion of any settlements as a reward for exposing the fraud.