Wells Fargo faces class action lawsuit over workers’ high drug costs

Former employees sued Wells Fargo on Tuesday, alleging the banking giant violated federal law by not diligently monitoring how much it was paying for their prescription drugs, which led to massive overcharges.

The class action lawsuit is the second of its kind filed in federal court, further heightening the legal risks for employers that don’t scrutinize how they purchase health and drug benefits for their workers. The lawsuit against Wells Fargo is almost identical to the first lawsuit, which was filed against Johnson & Johnson in February.

Both lawsuits have cited a STAT investigation that detailed the problematic relationships between pharmacy benefit managers and consulting firms, which are hired by employers to help them select a PBM and are supposed to look out for the best interest of those employers. The investigation also detailed how employers likely are running afoul of federal labor law by not tracking the conflicts of interest between PBMs and consulting firms.

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