Cases & Deals

CVS Caremark wins motion to compel arbitration and dismiss retail pharmacists' price fixing claims

Clients CVS Caremark Corporation

On behalf of CVS Caremark Corporation and its subsidiary AdvancePCS Inc., which was acquired by Caremark in 2004, Jones Day won a motion to compel arbitration and dismiss price fixing claims, and obtained reversal on appeal of a subsequent reversal of that decision. This class action antitrust litigation was brought under Section 1 of the Sherman Act by retail pharmacists who filed the lawsuit in the Eastern District of Pennsylvania, alleging that Caremark and two other pharmacy benefit managers colluded to fix prices for pharmacy drug dispensing services. Caremark moved to compel arbitration based on the provisions of the parties' contract. The district court granted the motion, but the decision was later reversed after multidistrict consolidation. Caremark appealed. The Third Circuit's opinion, issued on September 24, 2009, vacated the later order and remanded with directions to reinstate the order compelling arbitration. The Court explained: "[W]e do not believe that Congress intended that a 'Return to Go' card would be dealt to parties involved in MDL transfers." Id. at 32-33.

Bellevue Drug Co. v. AdvancePCS (n/k/a CaremarkPCS Health LLC), No. 07-1151 (3d Cir. Sept. 24, 2009)