News Summary
On June 23-24, 2025, Louisiana Governor Jeff Landry and Attorney General Liz Murrill announced lawsuits against CVS Health, alleging unfair trade practices related to a controversial text message campaign. The messages misled customers regarding the proposed House Bill 358, which aimed to prevent pharmacies from owning pharmacy benefit managers (PBMs). The lawsuits target CVS’s misuse of customer data, its vertical integration model harming market competition, and violation of state consumer protection laws. CVS denies wrongdoing, asserting its communications were legal and necessary.
Baton Rouge, Louisiana – On June 23 and 24, 2025, Louisiana Governor Jeff Landry and Attorney General Liz Murrill announced the filing of three lawsuits against CVS Health and its affiliates. The lawsuits allege that CVS engaged in unfair, deceptive, and unlawful trade practices after a mass text message campaign aimed to incite public opposition against House Bill 358.
This controversial legislation sought to prohibit pharmacies from owning pharmacy benefit managers (PBMs), a move intended to prevent conflicts of interest and protect independent pharmacists within the state. The proposed bill, however, ultimately failed to pass, prompting CVS to alert its customers through alarming text messages. These messages suggested that the passage of the bill would force CVS to close all its pharmacy locations in Louisiana, resulting in job losses and increased medication costs for residents.
Attorney General Murrill asserted that CVS improperly used customer information, which was originally intended for healthcare notifications, to instill fear and engage in political lobbying. The lawsuits filed by the state address multiple facets of CVS’s operations and its impact on the pharmacy market.
Lawsuit Details
The first lawsuit specifically targets CVS for the alleged misuse of customer data in its text message campaign. Notably, recipients included prominent figures such as First Lady Sharon Landry and various state officials, leading to heightened scrutiny of CVS’s practices.
The second lawsuit focuses on CVS’s vertical integration model, where the corporation manages significant elements of the pharmaceutical supply chain. This operational strategy is believed to inflate drug prices and stifle market competition, as highlighted by Murrill, who described CVS as imposing unethical and excessively high fees on independent pharmacies. Such actions are claimed to diminish the pharmacies’ ability to compete and adequately serve their communities.
The third lawsuit accuses CVS of violating Louisiana’s Unfair Trade Practices and Consumer Protection Law. Specifically, the suit claims that CVS systematically under-reimbursed independent pharmacies and threatened to evict them from its network unless they adhered to its pricing demands.
Industry Context
Critics of CVS and similar PBMs argue that these organizations contribute to the rising costs of medications. They point to a practice known as spread pricing, where PBMs charge customers higher prices for medications than what they pay independent pharmacies, keeping the difference as profit. CVS’s unique position as both a pharmacy and a PBM raises concerns about inherent conflicts of interest, potentially leading to inflated costs for consumers.
Currently, CVS operates 119 pharmacy locations throughout Louisiana. In response to these legal actions, CVS has denied any wrongdoing, asserting that its text communication with customers was legal and necessary to inform them of possible service disruptions. The company emphasizes its commitment to reducing drug costs and improving access to healthcare services for Louisiana residents.
Reactions and Future Actions
The lawsuits have sparked significant concern among state lawmakers. For instance, House Speaker Pro Tempore Mike Johnson has publicly criticized CVS’s tactics and advocated for measures that assure fair competition within the pharmacy sector. As a part of ongoing initiatives to enhance regulatory measures, Governor Landry has indicated that he may explore unilateral executive actions if necessary to better manage PBMs in the future.
In parallel to the state’s lawsuits, two law firms have initiated a separate class action lawsuit against CVS, targeting similar issues stemming from the controversial text messaging campaign. As these legal proceedings unfold, the ramifications for both CVS and the broader pharmaceutical landscape in Louisiana remain to be seen.
Deeper Dive: News & Info About This Topic
- AP News: Louisiana CVS Lawsuit
- WWL TV: Liz Murrill Sues CVS
- KALB: Landry Press Conference on CVS
- Reuters: Murrill Files Lawsuit Against CVS
- WWL TV: Louisiana Sues CVS Over Pricing Practices
- Wikipedia: Pharmacy Benefit Manager
- Encyclopedia Britannica: Pharmacy Benefit Manager
- Google Search: CVS lawsuit Louisiana
- Google News: CVS lawsuit Louisiana
- Google Scholar: CVS lawsuit
