Federal Judge Finds PBM Caremark Liable for $95 Million in Generic Drug Overcharges to U.S. Government

PHILADELPHIA, June 27, 2025  —  Miller Shah LLP and Berger Montague PC, 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.

“It was an honor and privilege to represent our client and the United States of America in this important case arising from the federal government being overbilled for important drugs that people use and need every day,” said James C. Shah, who led the Miller Shah trial team. In addition to James C. Shah, the Miller Shah attorneys and staff who worked hard to achieve this important result included Natalie Finkelman Bennett, Bruce D. Parke, James E. Miller, Jayne A. Goldstein, Robert W. Biela, Alec J. Berin, Sue Moss and Nicole C. Jefferson.

James Shah also specifically acknowledged the tremendous contribution by the team at Berger Montague, including Berger Montague Executive Shareholder David F. Sorensen, and  Caitlin G. Coslett, Susan Schneider Thomas, Joy Clairmont, William H. Fedullo, Laurel Boman, Susan Leo, David Filbert, and Diane Werwinski.  “The team at Berger Montague were simply superb and a pleasure to work with throughout this important representation,” said 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. 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 Miller Shah.

About Miller Shah

Miller Shah is one of the nation’s preeminent whistleblower law firms, having recovered billions of dollars for the United States and other government entities in such litigation over the past decade.  Miller Shah has also been at the forefront of litigating “non-intervened” False Claims Act cases on behalf of the United States over the past decade.  Miller Shah is headquartered in Philadelphia and has offices in New York, Hoboken, NJ, Chester, CT, Ft. Lauderdale, FL, and San Francisco, Beverly Hills and San Diego, CA, as well as Milan, Italy.

For Whistleblower Inquiries or Media Contact:

Tracy M. Feldman
tmfeldman@millershah.com
866.540.5505

SOURCE: Miller Shah LLP