Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Compliance December 19, 2011
CVS Settles Pension Funds’ Suits for $20M
December 19, 2011 (PLANSPONSOR.com) - CVS Caremark Corp. has agreed to pay nearly $20 million to settle three lawsuits involving allegations that the company defrauded pension systems in three states.
Reported by Rebecca Moore
The whistleblower 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, according to the Los Angeles Times.
Under terms of the settlements, CVS Caremark will pay nearly $7 million to the California Public Employees’ Retirement System (CalPERS), $4 million to the state of Illinois and $3 million to the state of Florida. Other money from the settlement went to plaintiff attorneys’ fees and costs, attorneys said in a news release.
CVS Caremark did not immediately respond to the Times’ request for comment.
The news report said that despite the allegations, CalPERS agreed in June to pay CVS Caremark $575 million per year to provide prescription drug benefits to 346,000 members.You Might Also Like:
Funded Status of the Largest Public Pension Funds Rises
Strong investment returns pushed funding level to 79.4% in May.
Benefits |
Despite Savings Shortfall for Public Sector Workers, Automatic Options Yet to Catch On
Research from the MissionSquare Research Institute shows that with defined benefit pensions not providing enough for full retirement, plan design...
State Pensions’ Funded Status Jumped in 2021
While state pensions reached their highest funded status in six years, market volatility and declining markets signal potential difficulty ahead.