CVS Pharmacy violated False Claims Act, costing states hundreds of millions of dolloars, lawsuit claims

Friday, April 18, 2014 by: PF Louis
Tags: CVS Pharmacy, False Claims Act, fraud

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
CDC issues flu vaccine apology: this year's vaccine doesn't work!
The five biggest lies about Ebola being pushed by government and mass media
Ultraviolet light robot kills Ebola in two minutes; why doesn't every hospital have one of these?
Tetanus vaccines found spiked with sterilization chemical to carry out race-based genocide against Africans
Biologist explains how marijuana causes tumor cells to commit suicide
Companies begin planting microchips under employees' skin
The best way to help your body protect itself against Ebola (or any virus or bacteria)
NJ cops bust teenagers shoveling snow without a permit
Russia throws down the gauntlet: energy supply to Europe cut off; petrodollar abandoned as currency war escalates
McDonald's in global profit free fall as people everywhere increasingly reject chemically-altered toxic fast food
W.H.O. contradicts CDC, admits Ebola can spread via coughing, sneezing and by touching contaminated surfaces
Top ten things you need to do NOW to protect yourself from an uncontrolled Ebola outbreak
Chemotherapy kills cancer patients faster than no treatment at all
FDA targets Dr. Bronner's Magic Soaps for sharing health benefits of coconut oil
U2's Bono partners with Monsanto to destroy African agriculture with GMOs
Why flu shots are the greatest medical fraud in history
Governments seize colloidal silver being used to treat Ebola patients, says advocate
Flu vaccine kills 13 in Italy; death toll rises

(NaturalNews) The real drug problems are FDA-approved. Not only do they not cure and only sometimes relieve symptoms, but they also cause side effects that create more medical problems. Many drugs are overcharged to public insurers such as Medicare, Medicaid and others. That motivates federal and state governments to go after the money through lawsuits with the help of whistleblowers. And the law that covers such claims is known as the False Claims Act.

The False Claims Act is sometimes called the "Lincoln Law" because it was written into federal law upon discovery of various companies cheating the Union with pumped-up charges for clothing and war toys during the Civil War. It featured provisions that enabled private citizens to report private enterprise fraud against government agencies.

Those provisions are called qui tam provisions, short for a Latin phrase, qui tam pro domino rege quam pro se ipso in hac parte sequitur, which roughly translates to "he who brings an action for the king as well as for himself."

"For himself (or herself)" means that the whistleblower -- in legalese, the relator -- is entitled to a piece of the action, 15 to 30 percent, while the government gets the larger cut. During the Civil War, the relator was entitled to 50 percent.

So if you work for a large corporation that relies largely on charging government agencies for services or products and have access to sufficient records, here's an opportunity to get even with your employer and give yourself a retirement bonus as a whistleblowing relator.

Then comes CVS Pharmacy under False Claims Act scrutiny

This suit alleges that CVS Pharmacy was involved with charging Medicare for DEA (Drug Enforcement Agency) Schedule 2 and 3 drugs, considered controlled substances, without DEA registration numbers. Examples are oxycodone, codeine and other prescription-only pain killers or psychotropics.

Properly prescribed controlled substances require DEA registration numbers on prescriptions. But according to the suit, filed originally by Fox Rx as the relator, one out of every five of CVS's payment claims to Medicaid during the period of 2008 - 2010 were without DEA-required registration numbers.

Fox Rx is a private enterprise insurance provider, and their lawsuit has attracted the United States, New York City, Washington, DC, and Chicago. After it was recently unsealed, 18 states were added as plaintiffs.

Fox claims, "CVS Pharmacy's failure to include DEA numbers was not mere error - it was a profitable business practice." The 36-page complaint also added this stinger: "As a result of its practices, CVS allowed federal and state funds to fund the purchase of dangerous drugs for black market sale and abuse."

Fox is demanding payment to the government three times what was lost from fraudulent payments, which could total hundreds of millions of dollars. And they want up to $11,000 per fraudulent prescription.

Saying CVS is going through some choppy financial water is an understatement. In 2013, they settled two lawsuits with similar charges to this one, paying out $11 million and $4.25 million. Now CVS has become a "usual suspect".

Fox Rx has another target in the legal system, the Walgreen Company. This recently filed suit accuses Walgreens of prescription drug payment fraud with both private and government insurance programs.

The Fox group alleges that Walgreens was not complying with state laws regarding substituting generic drugs. And Fox Rx also claims that Walgreens dispensed expired drugs too. Fox claims that these activities together have lead to Walgreens overcharging Medicaid, Medicare Part D and one of Fox Rx's private subsidiary insurance providers.

Seems like there are a few kinks in Big Pharma's drug pipeline. Maybe that's a good thing.

Sources for this article include:

Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...


Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of, the internet's No. 1 natural health news site. (Source:

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.