News Summary
Louisiana Attorney General Liz Murrill has filed three lawsuits against CVS Health Corp. for allegedly misleading residents through a mass text messaging campaign. The lawsuits claim CVS’s text messages misrepresented legislation on pharmacy benefit managers and engaged in predatory practices affecting independent pharmacies. Murrill argues that CVS’s actions violate state laws, prompting support from Governor Jeff Landry, who labels PBMs as corporate profiteers. These legal actions highlight growing concerns over the influence of pharmacy benefit managers on drug pricing and local pharmacies.
Louisiana – Louisiana Attorney General Liz Murrill announced three separate lawsuits against CVS Health Corp. and its affiliates on June 24, 2025. This legal action follows CVS’s mass text messaging campaign that allegedly misled Louisiana residents regarding legislation related to pharmacy benefit managers (PBMs).
The lawsuits were initiated after CVS sent out urgent text messages on June 11, 2025, warning customers that House Bill 358 would lead to pharmacy closures and increased prescription costs. The primary focus of House Bill 358 was to restrict PBMs like CVS from owning and operating pharmacies across Louisiana. Murrill claims that CVS violated the state’s Deceptive and Unfair Trade Practices Act by using client contact information for political lobbying without obtaining consent.
Murrill described CVS’s text campaign as intentionally misleading and fear-driven, with no substantial proof to back the claims made in the messages. Governor Jeff Landry is supporting these lawsuits, characterizing pharmacy benefit managers as “corporate profiteers” who do not effectively reduce prescription costs. Landry previously called for an investigation into CVS’s text messaging practices, labeling them as “unethical and manipulative.”
In addition to the deceptive messaging lawsuit, the second lawsuit accuses CVS of predatory business practices aimed at undermining independent pharmacies in Louisiana. Murrill indicates that CVS has contributed to the closure of nearly 160 independent pharmacies by paying lower rates than their acquisition costs for medications, thus placing these pharmacies in financial jeopardy.
The third lawsuit takes aim at CVS’s use of high fees, coercive contracts, and threats to exert pressure on independent pharmacists, which Murrill argues constitutes unfair competition under Louisiana law. According to state laws, pharmacy organizations are required to reimburse independent pharmacists at least their acquisition costs; CVS is alleged to be in violation of this requirement.
Murrill also pointed out CVS’s “vertical integration,” as the company owns various pharmacy-related entities, resulting in possible conflicts of interest and market manipulation. CVS Caremark, a subsidiary of CVS, reportedly controls numerous aspects of the pharmaceutical supply chain and reimbursement processes.
In response to the allegations, CVS has denied any wrongdoing, asserting that it did not exploit personal customer data in its text campaign and that it communicated responsibly regarding the legislative changes. However, Murrill expressed doubts regarding CVS’s willingness to cooperate during the discovery process of the lawsuits.
The lawsuits are part of a wider national concern regarding the practices of pharmacy benefit managers and their effects on prescription drug pricing. Murrill’s office has filed similar lawsuits against other major PBMs, aligning with national trends. Recent reports from the Federal Trade Commission have criticized similar practices among PBMs, echoing concerns raised by Louisiana officials.
House Bill 358 received controversial debates during the legislature’s session, with CVS’s text messages sparking significant political backlash leading to the end of the session. Despite passing the House with a notable majority (88-4 vote), the bill did not make it through the Senate prior to the closing of the legislative session.
As part of the ongoing legal battles, Murrill is also seeking injunctions and restitution from CVS, potentially resulting in further damages corresponding to the company’s practices. Additionally, a class-action lawsuit has been filed by private law firms on behalf of Louisiana residents who received CVS’s urgent text messages.
The legal actions represent a critical examination of state powers to regulate pharmacy benefit managers and their business practices. These developments contribute to the ongoing national dialogue concerning the roles and practices of PBMs, particularly regarding their impact on drug pricing and the survival of local pharmacies.
Deeper Dive: News & Info About This Topic
- WDSU: Louisiana Attorney General CVS Lawsuit
- Reuters: Attorney General Liz Murrill Files Lawsuits Against CVS
- NOLA: Quin Hillyer on CVS Case
- Louisiana Illuminator: Louisiana Sues CVS
- Encyclopedia Britannica: Pharmacy Benefit Managers
