Cigna Beats Racketeering Claims Over Alleged Pharmacy Clawbacks

Cigna Health & Life Insurance Co. defeated federal racketeering claims targeting its alleged practice of overcharging for prescription drugs through an improper clawback scheme kept hidden from patients.

The pharmacy benefit managers Cigna allegedly used to facilitate the scheme didn’t share a common fraudulent purpose with the insurer, as required for liability under the federal Racketeer Influenced & Corrupt Organizations Act, Judge Jeffrey Alker Meyer of the US District Court for the District of Connecticut said Monday.

Meyer noted that courts are split on whether a common fraudulent purpose is necessary, but said that to hold that it isn’t “would ...