Specifically, giant pharmaceutical CVS has already been sued, lighting the fuse on what could become a sprawling legal confrontation in Louisiana. The controversy began on June 11, when CVS sent mass text messages to thousands of residents in the state to lobby against legislation aimed at reforming its business practices. This spurred Louisiana Attorney General Liz Murrill to make her own announcement to launch an investigation into the company’s business practices.
Murrill alleges that CVS’s business structure allows it to “manipulate prices, restrict competition and channel profits internally.” CVS and its subsidiary Express Scripts now control roughly 80% of all prescription drug claims in the maritime market. This incredible dominance should raise major red flags about soaring drug prices and attacks on independent pharmacies.
These concerns were recently underscored by the Federal Trade Commission (FTC) in a report to Congress in 2024. The report stated that CVS’s market position contributes to “inflating drug costs and squeezing Main Street pharmacies,” raising alarms for both consumers and smaller businesses.
Louisiana is pursuing a number of other lawsuits against CVS as part of its overall litigation strategy. The state claims the company misused consumer data and improperly used its market dominance to raise drug prices. One of the lawsuits focuses on CVS’s expansive text message campaign. It says that the campaign constituted “unfair or deceptive acts” against state trade law. Other lawsuits claim that the company engages in a wide-ranging scheme to overcharge customers and competitors like independent pharmacies.
In one of the lawsuits, the legal team argues that CVS has employed “unethical, unscrupulous, and exorbitantly high fees on independent pharmacies,” leading to significant economic hardship for these smaller entities.
Louisiana Governor Jeff Landry voiced his concerns regarding the situation, stating that CVS has “abused customers’ sensitive information to push a political message.” Specifically, he wants to bring back legislation targeting CVS. He’ll sue if their current laws aren’t on his side in court.
Murrill confirmed that the lawsuits seek “injunctive relief, civil penalties, and restitution,” aiming to hold CVS accountable for its alleged actions.
CVS has defended its practices. A spokesperson for the company emphasized that “CVS Pharmacy remains the lowest cost pharmacy and a critical partner in lowering prescription drug costs for Louisianans.” Despite the charges, the company continues to assert that its communications to customers were legal and in compliance with industry standards.
Thanks to CVS’s extensive lobbying, the legislation it wanted to defeat was unable to pass. This result is encouraging, as it may indicate a shift in public opinion against the excesses of big pharma. Pursuits of open investigations and pending legal challenges are driving this change.
