Louisiana sues CVS for misleading text messages to customers
- Louisiana's attorney general filed lawsuits against CVS for allegedly misusing customer information and for lobbying against legislation.
- The lawsuits claim CVS deceived customers with alarming text messages regarding drug costs and pharmacy closures.
- The outcome of these lawsuits may impact both CVS's business practices and the operation of independent pharmacies in Louisiana.
In Louisiana, several lawsuits were filed against CVS by the state’s attorney general, Liz Murrill, over allegations of the company's misuse of customer information and its dominant market position. The legal action began after CVS sent mass text messages on June 11, warning residents that medication costs could rise and pharmacies might close if certain legislation was not passed. These messages were perceived as attempts to lobby against proposed regulations targeting CVS's business model. The lawsuits were initiated in St. Landry Parish and aim to seek injunctive relief, civil penalties, and restitution. One key argument in the lawsuits is that CVS engaged in 'unfair or deceptive acts' by using sensitive customer data to push a political agenda. Governor Jeff Landry highlighted that even family members received these lobbying texts, which were sent through a channel typically used for healthcare notifications. Apart from the deceptive practices, the lawsuits also claim that CVS artificially inflates prices for both consumers and independent pharmacies. As a pharmacy benefit manager, CVS is purported to manipulate the drug market by controlling prices, restricting competition, and routing customers towards CVS-owned facilities while under-reimbursing independent pharmacies. This control enables CVS to set the pricing terms for prescription drugs sold in Louisiana, directly affecting local pharmacies' viability. The text messages from CVS drew substantial attention due to their alarming content regarding drug costs and pharmacy closures. The proposed law intended to ban pharmacy benefit managers from owning retail pharmacies, but this initiative failed in the legislature. However, Governor Landry has expressed intentions to revive the legislation. In response to the lawsuits, CVS has denied wrongdoing, asserting their communication was compliant with the law, and framed their outreach as a necessary warning to customers regarding possible disruptions in accessing their medications.