Louisiana and CVS Health Reach $45 Million Settlement Over Pharmacy Practices

Baton Rouge, LA – The State of Louisiana has secured a $45 million settlement with CVS Health and its pharmacy benefit manager (PBM) subsidiary, resolving lawsuits alleging unfair business practices and consumer protection violations, Attorney General Liz Murrill announced on Friday, February 20, 2026.

Details of the Settlement

The settlement resolves three separate legal cases filed against CVS Health, addressing concerns that the company was harming Louisiana consumers and independent pharmacies. The lawsuits alleged that CVS engaged in deceptive communications regarding pending legislation, violated regulatory standards in its pharmacy benefit management practices, and engaged in unfair competition that negatively impacted Louisiana’s independent pharmacies—a critical segment of the state’s healthcare infrastructure. WAFB and KADN reported on the agreement.

Apply of Settlement Funds

The $45 million in settlement funds will be allocated towards implementing new pharmacy benefit legislation and expanding Medicaid fraud initiatives, in partnership with the Louisiana Inspector General and the Louisiana Department of Health. According to Murrill, the funds will “further ensure accountability in pharmaceutical pricing and PBM industry practices.” A spokesperson for Murrill indicated that further details on the allocation of funds would be released at a later date.

Background of the Lawsuits

The legal action stemmed from a political battle between Attorney General Murrill, Governor Jeff Landry, and CVS Health. Last year, Landry urged lawmakers to support a bill that would have prohibited pharmacy benefit managers from owning pharmacies, arguing that this “vertical integration” led to increased drug costs and harm to smaller pharmacies. HMP Global Learning Network provides background on the initial lawsuits filed in July 2025.

CVS Health responded by sending mass text messages to Louisiana customers, urging them to oppose the legislation, claiming it would result in the closure of over 100 pharmacies. The bill ultimately did not pass.

Subsequently, Murrill’s office filed three lawsuits against CVS: one alleging misuse of patient data for the text messages, another accusing the company of anti-competitive practices, and a third claiming harm to independent pharmacies through unfair fees and low reimbursements.

CVS Health’s Response

CVS Health stated it is “pleased” with the settlement agreement, noting that it allows the company to continue focusing on lowering healthcare costs and providing community pharmacy access to Louisiana residents. The company emphasized that the settlement does not constitute an admission of liability or wrongdoing.

Recent Developments

The settlement follows Governor Landry’s recent support for a new $5 million scholarship program launched by CVS Health for students pursuing pharmacy degrees at Louisiana universities, signaling a potential easing of tensions between the state and the healthcare corporation.