CVS Corporation Pays to Resolve False Claim Act Case for Fraud in Medicare Part D Plan
We represented the Relators, a retired couple on Medicare, in one of the very first Medicare Part D cases filed under the False Claims Act. The defendant in this case was CVS Corporation, which operated a Medicare Part D Drug Plan called SilverScript. CVS had misrepresented to prospective SilverScript Part D Plan buyers what their drugs would actually cost them out of pocket. Our clients figured out that CVS had engaged in "bait and switch" tactics, and had listed false prices on the Medicare Plan Finder website (maintained by the federal government to assist seniors in choosing a Part D plan). CVS agreed to settle the fraud allegations in the qui tam case and paid $5.25 million. The Relators received an 18% share of the settlement.