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June 26, 2025 News

Pharmacy Benefits Manager Caremark Found Liable for Overbilling Medicare for Drugs

Berger Montague PC and Miller Shah LLP, on behalf of their whistleblower client, are pleased to announce that on June 25, 2025, a Pennsylvania federal judge found pharmacy benefits manager Caremark and related entities liable for overcharging the government by $95 million for generic drugs provided to Medicare beneficiaries.

The case was initially filed in 2014 pursuant to the False Claims Act, which allows private citizen whistleblowers to bring claims on behalf of the government when the government is defrauded.

“This whistleblower case shows that the government was significantly overbilled for drugs that people need every day,” said Berger Montague Executive Shareholder David F. Sorensen, who led the Berger Montague trial team. The Miller Shah team was led by James C. Shah.

The Court’s ruling follows an eight-day bench trial before Chief Judge Mitchell S. Goldberg in the United States Court for the Eastern District of Pennsylvania. Berger Montague’s David F. Sorensen, Caitlin G. Coslett, Susan Schneider Thomas, Joy Clairmont, William H. Fedullo, Laurel Boman, Susan Leo, David Filbert, and Diane Werwinski partnered with James C. Shah and Natalie Finkelman Bennett of Miller Shah to litigate and try the decade-old case. The Court found the evidence presented at trial proved that Caremark caused false claims to be submitted to the government for generic drugs filled at Walgreens and Rite Aid pharmacies in 2013 and 2014, causing the government $95 million in single damages.

The Court has not yet ruled as to the trebling of damages or statutory civil penalties.

If you are a whistleblower seeking representation concerning a potential qui tam / whistleblower / False Claims Act case, please contact Berger Montague.

Berger Montague is one of the nation’s preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. The firm is active in the fields of antitrust, commercial litigation, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For more than 50 years, Berger Montague has played lead roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.

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