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December 24, 2020
On Wednesday, Cigna Corporation and its subsidiary, Express Scripts Inc. filed suit against Arefin Kabir, who was Director of Pharma Strategy and Contracting at Express and is accused of theft of trade secrets and violation of the confidentiality agreements that he signed as an employee of Express. The complaint was filed in the Middle District of Florida.
Express is the pharmacy benefit management subsidiary of Cigna and was formed to provide services such as claims processing, benefit design, drug-utilization review, formulary management, and cost analysis processes for Cigna’s medical, Medicaid, Medicare, and workers compensation insurance programs. The defendant, according to the complaint, signed several Confidentiality, Non-Compete, and Non-Solicitation Agreements over the course of his employment, including upon being initially hired in 2016 as well as an updated agreement in 2020. The plaintiff also explained that Kabir received
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Anthem, Inc., (Anthem) and Express Scripts, Inc., (Express Scripts) had a big win this week, creating another setback for plaintiffs filing ERISA lawsuits against pharmacy benefits managers (PBMs). On December 7, 2020, the Second Circuit Court of Appeals upheld U.S. District Judge Edgardo Ramos’s decision that Anthem and Express Scripts did not violate fiduciary obligations under the Employer Retirement Income Security Act (ERISA) because neither party acted as an ERISA fiduciary with regard to decisions that allegedly led to higher prescription drug prices for patients and plans. (
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Express Scripts Says Bad Jury Instructions Led To $82M Loss
Law360 (December 16, 2020, 7:40 PM EST) Express Scripts Inc. told the Delaware Supreme Court on Wednesday it should vacate a jury decision that ordered it to pay a Parthenon Capital Partners subsidiary $82 million in damages in a fraudulent inducement case, asserting that the jury was improperly instructed and a new trial is warranted.
During virtual oral arguments in front of the full slate of justices, counsel for Express Scripts said a flawed instruction given to a Superior Court jury tainted its June 2019 decision, which left Express Scripts and its subsidiary United BioSource LLC on the hook for damages in a fraud suit related to the.
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The U.S. Supreme Court handed down a decision on Thursday of last week that will impact state-level regulation of pharmacy benefit managers (PBMs) by holding that an Arkansas law regulating PBMs was not preempted by the Employee Retirement Income Security Act (ERISA). The decision capped off a busy week in litigation for PBMs as on Monday the Second Circuit held that a business transaction between a PBM and an insurer was not a fiduciary act under ERISA. Although the cases involve distinct issues, they provide some clarity for PBMs on the interplay between business decisions and litigation risks, and some expectation for future regulation at the state-level.
Wednesday, December 16, 2020
The U.S. Supreme Court handed down a decision on Thursday of last week that will impact state-level regulation of pharmacy benefit managers (PBMs) by holding that an Arkansas law regulating PBMs was not preempted by the Employee Retirement Income Security Act (ERISA). The decision capped off a busy week in litigation for PBMs as on Monday the Second Circuit held that a business transaction between a PBM and an insurer was not a fiduciary act under ERISA. Although the cases involve distinct issues, they provide some clarity for PBMs on the interplay between business decisions and litigation risks, and some expectation for future regulation at the state-level.