On behalf of CVS Pharmacy, Inc., S&C obtained a crucial preliminary injunction that paused a first-of-its-kind law that would have effectively shut down key pharmacies in Arkansas.
Earlier this year, Arkansas enacted Act 624, which bans any company that owns a pharmacy benefit manager (PBM) from also holding a pharmacy license and operating a pharmacy within the state. If allowed to go into effect, Act 624 would have upended the entire structure of the pharmacy and prescription-benefit industry in Arkansas, and forced CVS and other PBM-affiliated pharmacies to shutter their operations in the state.
CVS alleged that Act 624 is unlawful for several reasons, including because it violates the Dormant Commerce Clause by impermissibly discriminating against out-of-state companies. CVS’s lawsuit was consolidated with three other actions brought by Express Scripts, Optum, and the Pharmaceutical Care Management Association (PCMA).
U.S. District Court Judge Brian Miller of the Eastern District of Arkansas granted a preliminary injunction on July 28, finding that CVS and the other plaintiffs are likely to prevail under the Dormant Commerce Clause. “Act 624 appears to overtly discriminate against plaintiffs as out of state companies and the state has failed to show that it has no other means to advance its interests,” he wrote.
The S&C team was led by Jeff Wall and Judd Littleton and included Rishabh Bhandari and Andrea Pillai.