A division of CVS Caremark on Tuesday filed a lawsuit in U.S. district court in Chicago against Walgreen over allegations that the company improperly canceled contracts to fill prescriptions for 70,000 consumers, Bloomberg/Boston Globe reports. The lawsuit, filed by CaremarkPCS Health, maintains that the canceled contracts will affect prescription drug plans that Caremark administers for four companies -- ArcelorMittal, Johnson Controls, Progressive Casualty Insurance and the Wisconsin Education Association Trust.

According to the lawsuit, "Caremark and the tens of thousands of plan participants who depend on their Caremark-administered drug benefit to fill their prescriptions will suffer irreparable harm." The lawsuit seeks an injunction to prohibit cancellation of the contracts.

Walgreen spokesperson Michael Polzin said that the company canceled the contracts because CVS Caremark reduced reimbursements for prescription drugs covered by certain plans "to a level that impacts our ability to provide a high level of pharmacy service to those plan members." He added that Walgreen remains "committed to finding a solution" to the dispute (Bloomberg/Boston Globe, 11/8).

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