Caremark Rx Receives Requests For Business-Practices Information - 08/16/04
Article from the Wall Street Journal Online
In a filing with the Securities and Exchange Commission on Monday, the Nashville, Tenn. company said it is now being investigated by four additional states and the District of Columbia. That brings the number of states investigating the company's business practices to 23.
Last month, Caremark said that it received a request from the state of Washington's attorney general and that 18 other states would issue similar requests or subpoenas.
Caremark said in a statement earlier today that the latest information being sought is related to the original requests by the state of Washington, and relate to issues addressed in recent industry settlements. A Caremark spokesman declined to comment beyond the statement and wouldn't disclose which states issued the requests.
In April,
Medco Health Solutions Inc., another pharmacy-benefits manager, agreed to settle allegations of drug-switching practices. Medco, of Franklin Lakes, N.J. didn't admit or deny it substituted drugs without the knowledge or consent of patients.Last week, New York Attorney General Eliot Spitzer accused pharmacy-benefit manager
Express Scripts Inc. of defrauding the state out of tens of millions of dollars using schemes that inflated the cost of prescription drugs. The Maryland Heights, Mo., company has denied the allegations.In its securities filing, Caremark said it intends to "fully cooperate with the requests for information."
Caremark shares rose 1.4% or 40 cents to $28.45 in New York Stock Exchange composite trading at 4 p.m.