FPrevious employees sued Wells Fargo on Tuesday, claiming the banking giant broke federal law by failing to closely monitor how much it paid for their prescription drugs, leading to huge overcharges.
The class action lawsuit is the second of its kind filed in federal court, further increasing the legal risks for employers who do not scrutinize how they purchase health and drug benefits for their employees. The lawsuit against Wells Fargo is virtually identical to the first lawsuit, filed against Johnson & Johnson in February.
Both lawsuits cite a STAT investigation that details problematic relationships between pharmacy benefit managers and consulting firms, which are hired by employers to help them select a PBM and are supposed to represent those employers’ best interests. The investigation also detailed how employers are likely violating federal labor law by not monitoring conflicts of interest between PBMs and consulting firms.
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