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Violation Tracker Individual Record

Company: Caremark
Current Parent CompanyCVS Health
Parent at the Time of the Penalty Announcement subscribe to see this data field
Penalty: $41,000,000
Year: 2008
Date: February 14, 2008
Offense Group: competition-related offenses
Primary Offense: kickbacks and bribery
Mega-ScandalHealthcare Kickbacks
Violation Description: Pharmacy benefit manager Caremark agreed to pay $38.5 million for costs of litigation and programs to benefit patients to settle multistate litigation alleging that it tricked doctors into switching patients to different brand name medications in order to receive secret rebates from drug manufacturers. Caremark also agreed to pay up to an additional $2.5 million in reimbursements to patients who paid extra because they were switched from one cholesterol-controlling drug to another.
Level of Government: state
Action Type: agency action
Agency: Multistate Attorneys General Case
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: Rhode Island
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: retailing
Specific Industry of Current Parent: retail-pharmacies
Source of Data(click here)
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Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.