CVS Unit Must Pay Nearly $290 Million in Medicare Whistleblower Lawsuit, Judge Rules

The fraud committed by Caremark was financially motivated and not the result of some ‘innocent or mistaken belief,’ the judge wrote.

A customer leaves a CVS Pharmacy in Irvine, Calif., on Feb. 11, 2021. John Fredricks/The Epoch Times

A federal judge has ordered CVS Caremark Corp., a pharmacy benefit manager (PBM), to pay nearly $290 million in damages and penalties after it overcharged Medicare for prescription drugs.

In an Aug. 19 decision, Judge Mitchell S. Goldberg of the U.S. District Court for the Eastern District of Pennsylvania tripled to $285 million the original damages he ordered CVS Caremark to pay in June, citing the federal False Claims Act. He also added a $4.87 million civil fine.