FTC v. Caremark Rx, Zinc Health Services, et al.
Date Filed: September 20, 2024Status: Pending
District Court: Federal Trade Commission Office of Administrative Law Judges – 9437
Nature of Suit: Anticompetitive Practice
Defendant Type: Pharmacy Benefit Manager
Plaintiff Type: Federal
Court Document: https://www.ftc.gov/legal-library/browse/cases-proceedings/221-0114-caremark-rx-zinc-health-services-et-al-matter-insulin
The FTC filed a civil antitrust lawsuit against three of the largest prescription drug benefit managers that administer about 80% of all prescriptions in the United States for anticompetitive practices. The FTC alleged they engaged in unfair rebate practices, prioritizing high rebates from drug manufacturers that have artificially caused the price of insulin to rise. The FTC claims that these PBMs chose higher rebates, even when lower rates were available, to increase profits, improve relationships with manufacturers, and thus consequently shifted the inflated drug costs to patients.
After several pretrial meetings the FTC moved to redact confidential information from the original complaint. The FTC filed a request for an interlocutory appeal regarding the established number of witnesses the parties could call, which the court denied.
On March 31, 2025, the parties moved to stay the case as there was no commissioner available to participate in the case. The FTC moved to lift the stay as soon as a commissioner was available which defendants opposed to. The court ordered the lifitng of the stay. The parties are conducting discovery and have agreed to a stay in the case of another lapse in funding or commissioner availability.
Leave A Comment