Independent Pharmacists Support Lawsuit against CVS Caremark

CORPUS CHRISTI, Texas--(BUSINESS WIRE)--Community pharmacists nationwide are stepping up to financially support six independent pharmacists in Texas in their legal battle with CVS Caremark, the nation’s largest pharmacy health care provider. The six plaintiff pharmacies are all board members of American Pharmacies, a multi-state member-owned independent pharmacy cooperative. Nationwide, individuals and pharmacy organizations are donating $50 to $15,000 to the American Pharmacies Legal Defense Fund.

“Just as predicted, the anticompetitive effects of the 2007 merger of two giants in their respective fields—CVS in retail pharmacy and Caremark in pharmacy benefit management—have come to pass”

“Just as predicted, the anticompetitive effects of the 2007 merger of two giants in their respective fields—CVS in retail pharmacy and Caremark in pharmacy benefit management—have come to pass,” said Amanda Fields, American Pharmacies’ general counsel. “CVS Caremark is attempting to move this case out of the public eye by asking the court to send the case to a private arbitration instead of a public forum,” according to Fields.

After months of pressure from unions, consumers, lawmakers, and the National Community Pharmacists Association, the Federal Trade Commission initiated a “non-public review” of the $27 billion merger in August, 2009.

Texas pharmacist Bill Moore, RPh, said, “As a pharmacist of 51 years and owner of three independent pharmacies, I take my hat off to the six plaintiff pharmacies for taking this legal stand against CVS Caremark, but not just my hat, I sent financial support and will continue to do so to see this effort through. I challenge all independent pharmacy owners to take a stand to support those that are willing to risk everything on our behalf.”

“These six pharmacists are my heroes!” That’s what pharmacist Doug Eakman, RPh, said. “I admire the six pharmacies that are taking on CVS Caremark, and I commend American Pharmacies for taking the lead on this lawsuit.”

The National Community Pharmacists Association contributed significantly to the fund. “Community pharmacists are committed to providing critical medication counseling and other cost-saving services to our patients,” said Robert J. Greenwood, RPh, President of the National Community Pharmacists Association and Iowa pharmacy owner. “Unfortunately, and in spite of the company’s pre-merger pledge, some patients are being denied access to independent pharmacists as a result of the CVS Caremark merger. Across the country, certain local pharmacists are alleging anti-competitive conduct by CVS Caremark that may ultimately raise costs for employers and health plan sponsors. NCPA supports a fair and level playing field and consumer choice and, thus, supports efforts by independent pharmacy organizations that bring legal action on behalf of and to benefit all community pharmacists and their patients.”

American Pharmacies’ President Mike Gohlke went on to say, “American Pharmacies’ members are business entrepreneurs who can compete with all entities. Regrettably, the CVS Caremark merger has breached the principles of fair play on which our country so proudly stands. It is for these reasons that American Pharmacies proudly supports the courageous actions of its Board members, the six plaintiff pharmacies.”

The suit was filed in federal court in September, 2010. It accuses CVS Caremark of Racketeer Influenced and Corrupt Organizations Act (RICO) violations and trade secret misappropriation. The complaint also says CVS Caremark contracts requiring patients to buy maintenance medications only from CVS Caremark violate the Texas “Any Willing Provider” law.

The plaintiff pharmacies complain CVS Caremark misuses private business and patient data to target pharmacies for takeover. They assert these actions are ongoing criminal practices constituting racketeering. The plaintiffs seek treble damages for the RICO violations, as well as an injunction barring CVS Caremark’s practices in the future. The trade secret misappropriation claim includes a request for exemplary damages.

The plaintiff pharmacies are:

Rogers Pharmacy, Victoria;
Brookshire Bros. Pharmacy of Kirbyville;
Hometown Pharmacy, Fairfield;
Hibbs Pharmacy, Bay City;
Kinsey’s Pharmacy, Tyler; and
De La Rosa Pharmacy, Weslaco.

The plaintiffs’ attorneys in this matter include Donald R. Taylor and Miguel S. Rodriguez of Taylor Dunham, LLP. The suit is filed in the U.S. District Court for the Southern District of Texas in Victoria