Legal News

Stories about physicians and other healthcare professionals involved in lawsuits—as either a plaintiff or a defendantor accused of breaking the law. Various legal updates or unusual stories in the news may land here.

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CVS Health sued by coalition of states alleging Medicaid fraud by pharmacies

A whistleblower lawsuit claims CVS pharmacies have overbilled state Medicaid programs for prescription drugs—a practice allegedly ongoing since 2016. The company denies any wrongdoing.

Optum UnitedHealthcare UnitedHealth Group HQ

UnitedHealth, Amedisys offer divestitures as $3.3B merger advances

Pennant and BrightSpring Health Services have agreed to purchase some healthcare businesses from UnitedHealth and Amedisys. However, it remains unclear whether this will be enough for the DOJ to drop its lawsuit blocking the merger.

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UnitedHealth sued by shareholders over concealing fallout of CEO's murder

In a lawsuit, plaintiffs allege the company changed course from a long-standing policy of denying medical claims, hiding from investors its impact on profits. The insurer denies any wrongdoing and vowed to defend itself in court. 

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Florida hospitals sue nonprofit over ‘pay-to-play’ safety rankings

Five Tenet Healthcare hospitals are suing the Leapfrog Group, accusing the organization of pressuring hospitals to share internal data in exchange for higher scores in its annual safety rankings. The watchdog outright denies the claim. 

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Jury reaches ‘record’ $60M verdict in case over botched interventional procedure

The case dates to 2019, when 64-year-old David Gangaram visited a Long Island outpatient clinic for an image-guided lumbar epidural steroid injection. 

Rite Aid closing stores bankruptcy

Rite Aid seeking buyout as it files for bankruptcy—again

For the second time in less than two years, the struggling retail pharmacy chain has filed for Chapter 11 bankruptcy protection, seeking buyers as it prepares for store closures.

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Michigan sues PBMs, alleging unlawful collusion created ‘pharmacy deserts'

State Attorney General Dana Nessel is suing Express Scripts and Prime Therapeutics, accusing the two PBMs of manipulating rebate pricing, "crippling small, independent pharmacies and restricting access to lifesaving medications in the process."

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19-state coalition sues HHS over restructuring, mass firings

The states argue the Department of Health and Human Services is failing to perform basic functions, in violation of the Constitution, as the agency and its programs are authorized by Congress.