law

Drugstores rebuffed by U.S. Supreme Court on West Virginia suit

BLOOMBERG NEWS FILE PHOTO DAVID PAUL MORRIS
The U.S. Supreme Court rejected an appeal from Walgreen Co., Wal-Mart Stores Inc. and four other drug retailers - including a unit of CVS Caremark - accused of violating a West Virginia law aimed at saving consumers money on prescriptions.
Posted 11/29/11

WASHINGTON - The U.S. Supreme Court rejected an appeal from Walgreen Co., Wal-Mart Stores Inc. and four other drug retailers accused of violating a West Virginia law aimed at saving consumers money on prescriptions.

The appeal sought to force a lawsuit against the companies into federal court, where corporate defendants often fare better. A federal appeals court said the suit, filed by West Virginia Attorney General Darrell McGraw, should proceed in state court instead.

Target Corp., Kroger Co., Sears Holdings Corp.’s Kmart chain and a unit of CVS Caremark Corp. joined Deerfield, Ill.-based Walgreen and Bentonville, Ark.-based Wal-Mart in seeking Supreme Court intervention. The issue in the appeal was whether McGraw’s suit was a class action, which under federal law the defendants could move out of state court.

The West Virginia law requires pharmacies to fill prescriptions with generic drugs whenever possible and pass on the savings to customers. The state, which is seeking disgorgement of alleged overcharges and civil penalties, alleges the pharmacies aren’t passing on the lower wholesale costs they pay for generic drugs.

The case is CVS Pharmacy v. West Virginia, 11-224.

No comments on this story | Add your comment
Please log in or register to add your comment
Calendar
PBN Hosted
Events

Only a few seats remain for PBN's Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Don't hesitate. Register today!
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News