NCPA applauds judge’s ruling in CVS case 

ALEXANDRIA, Va. – The National Community Pharmacists Association applauds a decision by a federal judge in Arizona in a class action case against CVS that a court, not an arbitrator, should decide whether a plaintiff’s claims against the company must be sent to arbitration.  Judge John J. Tuchi of the U.S. District Court for the District of Arizona agreed with Osterhaus Pharmacy that a provision in its contract with CVS that all disputes must be decided by an arbitrator is unconscionable, according to the NCPA. “Caremark and the other PBMs stack the decks in their arbitration proceedings to avoid accountability for illegal acts,” said Matthew Seiler, general counsel for the NCPA. “The ‘day in court’ they offer pharmacies costs more and takes away important rights that pharmacies would have if they could proceed in court. We are glad that the court recognized how Caremark’s forced arbitration clause is ‘substantively unconscionable.’ The arbitration process also keeps these cases secret. That allows Caremark and the other PBMs to continue to treat pharmacies unfairly and illegally extract junk fees. We are hoping this lawsuit helps to bring these unlawful practices into public view.” Matt Osterhaus, an NCPA member, filed his case against CVS in September of last year. At issue, the association says, is whether billions of dollars in backdoor fees that CVS imposes on pharmacies, otherwise known as DIR fees, are legal. As part of that case, Osterhaus challenged the legality of delegation clause. Other aspects of the case have yet to be decided, the NCPA says.