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StocksMedium•3 April 2026•

1 min read

CVS Health Faces Class Action Lawsuit Over Alleged Illegal Drug Kickbacks

Key Facts

1A class action lawsuit was filed against CVS Health and its unit CaremarkPCS Health alleging illegal kickbacks.

2The lawsuit alleges the company sold drug formulary access to manufacturers for kickbacks, driving up costs.

3The plaintiff is Roofers’ Unions Welfare Trust Fund, seeking to represent entities affected since March 18, 2020.

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CVS Health and its subsidiary CaremarkPCS Health are facing a class action lawsuit alleging the acceptance of illegal kickbacks from drug manufacturers. The lawsuit, filed by the Roofers’ Unions Welfare Trust Fund, claims the company sold access to drug formularies in exchange for payments, effectively driving up costs for consumers. According to the allegations, CVS prioritized high-cost drugs instead of securing rebates to lower expenses for its clients. The legal action seeks to represent entities affected by these practices dating back to March 18, 2020, increasing pressure on the PBM business model. This development heightens regulatory and financial risks for the company, with the potential for significant legal settlements. Investors are closely monitoring the case as it could impact CVS's long-term profitability and reputation in the healthcare sector.