Philadelphia files lawsuit against major pharmacy benefit managers regarding the opioid crisis.
Philadelphia has initiated legal proceedings against the nation’s three largest pharmacy benefit managers (PBMs), namely CVS, UnitedHealth Group, and Express Scripts, asserting their involvement in exacerbating the city’s ongoing opioid crisis. This lawsuit, filed on Thursday, claims that these companies played a significant role in promoting addiction and overdose deaths within the city.
The complaint alleges violations of both Philadelphia and Pennsylvania consumer protection laws, as well as the federal Racketeer Influenced and Corrupt Organizations Act (RICO). The city characterizes the PBMs as essential contributors to the country’s prescription opioid supply and payment chain, contending that their actions have been instrumental in fueling Philadelphia’s long-standing opioid epidemic.
The legal action follows substantial settlements with Purdue Pharma and other companies, which have drawn attention to the multifaceted sources of the current public health crisis. The lawsuit articulates that these PBMs engaged in a concerted effort with opioid manufacturers to mislead the public regarding the risks and benefits associated with prescription opioids. Specifically, it details how Express Scripts contacted Purdue Pharma in an attempt to downplay concerns regarding OxyContin’s addictive potential and how CVS collaborated with Purdue in conducting misleading training sessions for pharmacists.
According to the city’s complaint, the allegations extend to practices that prioritized profit over patient safety, as the PBMs purportedly facilitated the distribution of vast quantities of prescription opioids through mail-order pharmacies while accepting substantial rebates in exchange for favorable drug placement on formularies. The lawsuit highlights that subsequently, these actions contributed significantly to the city facing an unprecedented public health crisis due to opioid misuse.
Philadelphia has reported over 12,000 overdose deaths linked to opioids from 2010 to 2023, underscoring the urgent need for accountability among those deemed responsible for encouraging opioid overprescribing and misuse. The city is seeking compensatory and punitive damages, along with corrective measures aimed at preventing further misconduct.
As part of its legal strategy, Philadelphia’s lawsuit references confidential documents acquired during national opioid litigation, which allegedly demonstrate the collaborative efforts of PBMs with opioid manufacturers to drive opioid sales.
In response to the lawsuit, CVS has declared the allegations as unfounded and expressed its intent to defend itself vigorously. Meanwhile, UnitedHealth and Express Scripts have yet to issue a public comment. The outcome of this litigation will be closely monitored as it unfolds, given its potential ramifications for public health policies and corporate accountability concerning the opioid epidemic.
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