CVS Faces Lawsuits Over Alleged $62M Fraud in 340B Drug Savings

• •KU Hospital Authority alleges CVS diverted $62 million in 340B savings.
• •University of Michigan claims CVS made $66 million in illegal profits from the same program.
• •Both lawsuits indicate significant concerns regarding the management of the 340B Drug Pricing Program.

The University of Kansas Hospital Authority is suing CVS, claiming the company fraudulently diverted nearly $62 million in prescription drug savings from the federal 340B program between 2020 and 2025. The lawsuit alleges that CVS's actions were intentional and aimed at enhancing its profitability. CVS reportedly terminated its contract with KU in retaliation for the hospital's request for an audit. Similarly, the University of Michigan has filed a lawsuit against CVS for allegedly making $66 million in illegal profits from the same program. Both lawsuits highlight the ongoing issues with the 340B program, which is designed to provide discounted drugs to hospitals serving low-income patients. CVS has declined to comment on the ongoing litigation. The cases reflect broader concerns about the integrity of the 340B program and its potential for abuse.