CVS Health Must Face ‘Worthless Services’ Drug Packing Claim

A whistleblower can advance his suit alleging that CVS Health Corp. violated the False Claims Act by seeking payments from federal health-care programs while failing to prevent drug shipments from “flash freezing.”

Stan Ellis adequately raised a “worthless services” theory of liability by alleging that drug manufacturers warned CVS that its use of a Styrofoam packing system caused the drugs to freeze during shipping, which required them to be discarded, Judge Gerald A. McHugh of the US District Court for the Eastern District of Pennsylvania said in a Tuesday opinion.

Discarded medication does nothing for a patient regardless of ...