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June 11, 2021

Cigna Dodges Class Certification in Pharmacy Rebate Suit

United States District Judge Jeffrey Meyer (D. Conn.) denied class certification to the plaintiff’s in a putative class action lawsuit related to Cigna’s prescription pricing related to discounts and rebates. The lawsuit alleged that Cigna was recovering amounts through discounts and rebates that were not realized at the point of sale (POS) and that consumers ended up paying more of the POS cost than they should have been. The primary basis for the lawsuit was that Cigna was recouping amounts from the pharmacies where the cost of the medication was less than the members co-payment amount. The putative class included self-funded health plans and members where Cigna provides the Rx Administrative services or operates the health plan as the claims administrator,. The court held that the class could not be certified because of the difference in the contract and plan language related to these charges. The Court did indicate that the decision was based solely on the inability to certify the class – not the merits of the plaintiffs’ claims. Back in 2018, the District Court had allowed the lawsuit to proceed, finding the Plaintiff’s had plausibly stated claims implicating ERISA and RICO.