On February 7, 2025, Kehoe Law Firm, P.C. filed a class action lawsuit in U.S. District Court for the Central District of California (Case No. 2:25-cv-01099) on behalf of C&M Pharmacy Inc., d/b/a Parvin’s Pharmacy and Katz Pharmacy, against GoodRx and several major pharmacy benefit managers (PBMs), including CVS Caremark, Express Scripts, MedImpact, and Navitus.
The lawsuit alleges that these entities conspired to suppress reimbursement rates and impose higher fees on independent pharmacies, threatening their financial viability.
The complaint claims that GoodRx’s “Integrated Savings Program” (“ISP”) collaborates with PBMs to artificially lower generic drug reimbursement rates and increase transaction fees, enriching GoodRx and PBMs at the expense of independent pharmacies. The ISP allegedly uses GoodRx’s pricing algorithm and real-time PBM data so the PBMs can improperly coordinate and determine generic drug prices. These actions, according to the lawsuit, violate antitrust laws by fixing prices and creating unfair competition.
“We are pleased to stand with independent pharmacies in their fight against what we believe are the predatory practices of PBMs and GoodRx,” said John Kehoe, Partner at Kehoe Law Firm. “Combating collusion in the healthcare industry is critical to ensuring fair competition and protecting the backbone of many communities—their local pharmacies.”
The Federal Trade Commission (“FTC”) has also been investigating the role of PBMs in the pharmaceutical supply chain. An interim report released in July 2024 raised concerns about PBMs’ vertical integration and market concentration, which have granted PBMs significant control over drug pricing and accessibility. The FTC found that the six largest PBMs manage nearly 95% of all U.S. prescriptions, profiting at the expense of patients and independent pharmacies.
In addition, the House Committee on Oversight and Accountability released a report in July 2024 criticizing the pricing tactics of the three largest PBMs—CVS Caremark, Express Scripts, and OptumRx. The report concluded that these PBMs have monopolized the pharmaceutical market, raising prescription drug prices, undermining community pharmacies, and harming patients nationwide.
Questions About the Antitrust Class Action Lawsuit?
To learn more about the class action lawsuit or discuss potential legal claims, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], [email protected], for a free, no-obligation legal evaluation.
About Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. The firm’s partners have collectively served as Lead Counsel or Co-Lead Counsel in high-profile cases, recovering over $10 billion for institutional and individual investors.