HM Compounding Services, a compounding pharmacy, sued Express Scripts more than four years ago, claiming the PBM was conspiring to deprive patients of medications supplied by compounding pharmacies. The lawsuit came after Express Scripts terminated the contract agreement with HM Compounding.
Last November, a judge dismissed a number of HM’s claims after finding it breached its contract by refusing to collect copayments. The judge ruled that Express Scripts was justified in terminating the contract.
In addition, HM failed to turn over documents in its own lawsuit claiming they didn’t exist, which ultimately led to its downfall. HM ended up producing more than 100,000 documents after a deadline and after claiming they didn’t exist, which a judge called “gross misconduct.”
“Admittedly false declarations were submitted, and misrepresentations were made to opposing counsel as well as to the special master and this court with clear, reckless disregard for the truth of the matters,” a judge ruled.
In January, a judge ordered HM to pay Express Scripts $20 million.
Express Scripts is still waiting for the payment. It is now focused on identifying assets of HM Compounding, which is no longer operating.
While the pharmacy paid nearly $367,000 in attorneys fees and costs for misconduct, the $20 million award left unpaid is collecting interest daily.
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