Law Street Media

CVS Sued Over ‘Fraudulent’ Donations to American Diabetes Association

A CVS store front

An editorial stock photo of the CVS store front on Las Vegas strip. Cars and People can be seen traveling up and down the famous strip.

A consumer filed a class-action complaint in the Eastern District of New York against CVS Health Corporation for a purportedly deceptive charity campaign it held last year, which the plaintiff asserts was more like a reimbursement to CVS than a charitable donation.

According to the complaint, prior to the completion of a customer’s transaction, the checkout screen would prompt the customer with several boxes of pre-selected amounts (and an opt out option) to donate to the American Diabetes Association (ADA). The plaintiff alleges that CVS did not merely collect the customer’s donations and forward them to the ADA, but instead, counted the donations toward a legally binding obligation of $10 million that CVS had made to the ADA. 

In short, the plaintiff accuses the defendant of reimbursing itself with the charity donations. The plaintiff asserts that the defendant’s treatment of the charity donations was materially different from the untrue, deceptive and misrepresented claim that CVS had given customers.

Thursday’s complaint notes that the charity campaign for the ADA was conducted by CVS from November 2, 2021, to November 27, 2021.

The plaintiff donated to the ADA on November 15, 2021, via CVS’s campaign, according to the complaint. As a result, the plaintiff asserts that he and the putative class are entitled to damages.

The plaintiff seeks to represent a class consisting of the plaintiff “and all other persons who made a Campaign Donation,” which is purportedly in the thousands.

CVS is accused of engaging in common-law fraud as well as violating consumer protection laws of the 50 states and the District of Columbia.

The plaintiff seeks the following for relief: an award to the plaintiff and putative class members of disbursements, costs, damages, and relief.

The plaintiff is represented by Todd C. Bank, Attorney at Law P.C.

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