Lpm UK University Sues CVS Health for $41 Million Fraud Allegations
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- •The University of Kentucky alleges CVS Health diverted over $41 million from its hospitals.
- •The lawsuit claims CVS engaged in fraud and racketeering under the RICO Act.
- •Similar lawsuits have been filed in other states, indicating a broader issue with CVS's practices.
The University of Kentucky has filed a federal lawsuit against CVS Health, alleging the company diverted over $41 million from hospitals in Lexington and Ashland through fraudulent practices related to the 340B drug pricing program. The lawsuit, filed on October 27, 2026, claims CVS charged full prices for drugs instead of the discounted rates stipulated in their contracts, thereby unlawfully profiting from the hospitals. UK claims this scheme occurred from October 2020 to October 2025 and seeks triple damages under the RICO Act. Similar lawsuits have been reported in Michigan and Kansas, with claims totaling $95 million and $62 million respectively. CVS has not yet responded to the lawsuit but maintains its commitment to the 340B program. The university is also seeking access to CVS's records to verify the total amount diverted. UK aims to recover the funds for the benefit of its patients and healthcare services.
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