ERISA NEWS: NEW DRUG PRICING LAWSUIT FILED UNDER ERISA
Express Scripts Inc. and Anthem Inc. are accused in a proposed class action of breaching their ERISA fiduciary duties (i.e., their obligations to the thousands of employees promised prescription drug coverage by the employer) by entering into a 10-year, multibillion-dollar prescription-drug agreement that caused plan participants to overpay for benefits ( Burnett v. Express Scripts, Inc. , S.D.N.Y., No. 1:16-cv-04948, complaint filed 6/24/16 ). The lawsuit is the latest development in the $15 billion battle between Anthem and Express Scripts. In March, Anthem filed a lawsuit against Express Scripts for allegedly overcharging for prescription drugs in violation of the parties’ agreement.
Two months later, two health plan participants filed their own lawsuit against both companies under the Employee Retirement Income Security Act challenging Express Scripts’ alleged overbilling. The latest lawsuit, filed June 24 in the U.S. District Court for the Southern District of New York, is brought by participants in three medical plans sponsored by Verizon Communications Inc., AmTrust Financial Services Inc., and LG&E and KU Energy LLC. The plans have more than 26,000 participants combined.
At Silvern & Bulger we have represented workers under ERISA who have had their rights violated by their employer, the plan’s insurance company or the plan’s administrator.