Massachusetts attorney general settles with CVS on prescription drug pricing

Boston Massachusetts Attorney General Martha Coakley said Monday that the state has reached an agreement with CVS Pharmacy in which the pharmacy chain will repay the state and public entities $2.65 million for alleged prescription drug overcharges.

According to Coakley, $1.3 million will go to about 200 cities and towns, as well as other public entities, that allegedly had been overcharged since 2002 for prescriptions covered under the workers compensation insurance system.

A CVS Caremark Corp. spokesman said the company has not admitted liability or wrongdoing, but agreed to settle the matter to avoid the expense of a further investigation.

The remaining $1.35 million from the settlement will go to the state's general fund.