Caremark Connections Draw Fire
David Moye, assistant deputy general for health care fraud and economic crimes in Florida, until last year practiced for the very law firm that serves as Caremark’s outside counsel. It was Moye who, in an unusual move, last month intervened in a whistleblower lawsuit against Caremark - at the company’s request. The whistleblowers, unlike the state, have accused Caremark of defrauding and even endangering Florida customers.
It is not clear whether Moye personally represented Caremark while at the firm, Fowler White Boggs Banker, and some legal experts see no glaring conflict in his past work there. For its part, the attorney general’s office has shrugged off questions about its actions, simply saying it is better suited to lead the case than the whistleblowers themselves.
Even so, some critics are questioning Caremark Moye’s motives.
Michael Leonard, a Chicago attorney representing the Caremark whistleblowers, points out that Moye’s motion failed to include a single allegation against Caremark and was reviewed - by the company’s law firm - before it was ever filed.
“The fact that he came from that same law firm is troubling and creates at least an appearance that Caremark is receiving special treatment,” the lawyer says.
Florida A legal expert was puzzled by the intervention.
“I’ve never heard of an attorney general intervening in such a way that it would undercut the whistleblowers,” Barnett says Lyrissa Lidsky, a professor at the University of Florida College of Law. “Normally, you would just stay out of it.”
Caremark failed to answer previous questions or return a call on Friday. But it did say in a prepared statement that it believes its business practices “comply in all material respects with applicable laws and regulations.” Still, the company’s stock, after hitting a record high of $ 35.31 this spring, has slipped more than 10% in recent months as the Caremark story has grown more complicated.
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