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Texas Pharmacies File Trade Secret Misappropriation Lawsuit Against CVS Caremark

In Other Cases of Interest on October 4, 2010 at 9:17 am
CVS/pharmacy on Garrett Road in Durham, North ...

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Business Wire reports that six independent pharmacies in Texas have filed suit against CVS Caremark for Racketeer Influenced and Corrupt Organizations Act (RICO) violations and trade secret misappropriation.  The complaint alleges that CVS Caremark violates the firewall between the retail pharmacy and the pharmacy benefit manager (PBM) entities, as required when the Federal Trade Commission approved the CVS and Caremark 2007 merger.  The combined company allegedly built an information technology platform that straddles all of CVS Caremark’s business segments, capturing in-depth patient data for marketing and other purposes in violation of HIPAA patient privacy laws.  “CVS Caremark traps patients and non-CVS retail pharmacies in a scheme to deny patient choice of pharmacy and to smother business competition,” said Amanda Gohlke Fields, American Pharmacies general counsel.  Plaintiffs allege that patient information gathered from non-CVS pharmacies includes names, addresses, birth dates, medical diagnoses, prescription histories, and prescribing physicians, which CVS Caremark allegedly mines to identify individual patient buying practices, their physicians’ prescribing practices, and individual pharmacy business volume.

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