September 8, 2005 — Caremark, formerly known as Advance PCS Massachusetts Attorney General Tome Reilly has intervened in a qui tam lawsuit filed by three private Relators against Caremark. The allegations of the case are that Caremark used deceptive practices, charges additional fees and higher prices at the expense of the Commonwealth. Among the allegations asserted by the private Relators were claims that Caremark: convinced drug companies to pay fees to ensure that their products were on a list promoted to doctors and health plans as the best value in their class, and classified certain monies received as payments for bogus services so that it did not have to turn the monies over to the health plans. Under the Massachusetts False Claims Act, anyone with personal knowledge that someone has defrauded the Commonwealth can file an action to recover triple the amount defrauded, and the Attorney General has the power to intervene in, and prosecute those actions. See Massachusetts Attorney General Press Release 9/8/05 |