CVS Caremark Corp. and Cardinal Health Inc. are facing a breach of contract lawsuit brought by Savient Pharmaceuticals Inc.
The drug maker alleges that CVS improperly attempted to return for credit hundreds of opened bottles of specialty drugs through Cardinal.
Savient’s New Jersey breach of contract lawsuit contends that CVS and Cardinal Health violated Savient’s drug return policy, which states that retailers will receive a credit at 90 percent of the wholesale acquisition cost for all valid returns. In this case, Savient maintains that CVS has refused to pay an unpaid balance of $1.35 million and improperly requested that the returns of opened bottles be applied to the outstanding amount.
“CVS has attempted to leverage its profile as one of the largest retail drug pharmacies in the United States in order to force Savient to sustain the losses associated with these improper returns,” the complaint states. “As a result, defendants have not paid Savient for the drug products that Cardinal Health purchased on CVS’ behalf and for CVS’ benefit.”
“By active participation, aid or encouragement, the actions of CVS and Cardinal Health constitute a common plan or design to commit a tort upon Savient: to wit, returning or attempting to return opened or partial bottles of Oxandrin in violation of Savient’s Drug Return Policy,” the complaint says. “CVS and Cardinal Health have engaged in this wrongful conduct for their benefit and to the detriment of Savient.”
As this case highlights, contract provisions and practices concerning returns may merit special attention. Lawyers may assist in attempting to clarify intentions and reduce the likelihood of misunderstandings and potential litigation.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
