On June 25, 2025, Judge Mitchell S. Goldberg found that CVS Caremark Corporation (“Caremark”) violated the False Claims Act by making false representations when reporting certain Medicare Part D claims to the United States government and that Caremark’s conduct caused the government to pay elevated subsidies. The case was brought by Relator Sarah Behnke, and the court ruled that Ms. Behnke had proven pre-trebling and pre-statutory penalty damages in the amount of $95 million.
Econic Partners Founding Partner Loren Smith provided expert testimony on damages in support of Ms. Behnke. The court relied on Dr. Smith’s testimony and stated that “Dr. Smith’s DIR-based damages calculation, using the ‘average discount price discrepancy’ model, represents a reasonable estimate of damages in this case.” The damages found by the court came directly from Dr. Smith’s analysis that he presented at trial.
Dr. Smith was supported by Dr. James Banovetz and Dr. Josephine Duh, Partner at Econic Partners. The expert team worked closely with Plaintiff Counsel, including Shareholder Caitlin Coslett, Managing Shareholder David Sorensen, and Associates Laurel Boman and William Fedullo of Berger Montague.
