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STATE EX REL. GURGANUS v. CVS

Docket Nos. 146791, 146792, 146793. Calendar No. 4.

852 N.W.2d 103 (2014)

496 Mich. 45

STATE of Michigan ex rel. GURGANUS v. CVS CAREMARK CORPORATION. City of Lansing v. Rite Aid of Michigan, Inc. City of Lansing v. CVS Caremark Corporation.

Supreme Court of Michigan.

Decided June 11, 2014.

Attorney(s) appearing for the Case

Varnum LLP, Grand Rapids (by Perrin Rynders and Bryan R. Walters ) for Marcia Gurganus, the city of Lansing, Dickinson Press Inc, and Scott Murphy.

Foley & Lardner LLP (by Jeffrey S. Kopp , Detroit, Robert H. Griffith , and David B. Goroff ) for CVS Caremark Corporation, CVS Pharmacy, Inc, Caremark, LLC, Revco Discount Drug Centers, Inc, and others.

Dykema Gossett PLLC (by Jill M. Wheaton , Ann Arbor, Todd Grant Gattoni , Detroit, and Lisa M. Brown ) for Kmart Holding Corporation, Sears Holdings Corporation, Sears Holdings Management Corporation, and Sears, Roebuck and Co.

Miller Canfield Paddock and Stone PLC (by Todd A. Holleman , Detroit, Clifford W. Taylor , Lansing, Robert L. DeJong , Grand Rapids, and Joseph M. Infante , Grand Rapids) for Perry Drug Stores, Inc, and Rite Aid of Michigan, Inc.

Dickinson Wright PLLC, Grand Rapids, (by Edward P. Perdue ) and Faegre & Benson LLP (by Wendy J. Wildung and Craig S. Coleman ) for Target Corporation.

Honigman Miller Schwartz and Cohn LLP (by Norman C. Ankers , Arthur T. O'Reilly , Detroit, and Eric J. Eggan , Lansing) for The Kroger Co. of Michigan, The Kroger Co., and Walgreen Co.

Miller Johnson, Grand Rapids, (by Matthew L. Vicari and Joseph J. Gavin ) and Jones Day (by Tina M. Tabacchi , Brian J. Murray , and Dennis Murashko ) for Wal-Mart Stores, Inc.

Warner Norcross & Judd LLP, Grand Rapids, (by Matthew T. Nelson and Gaetan Gerville-Reache ) for amicus curiae the Michigan Chamber Litigation Center.

Barris, Sott, Denn & Driker, PLLC, Detroit, (by Morley Witus ), and Jesse C. Vivian , Livonia, for amicus curiae the Michigan Pharmacists Associaticn.

Bodman PLC (by Janes J. Walsh and Rebecca D'Arcy O'Reilly , Detroit) for amici curiae the National Association of Chain Drug Stores, the National Community Pharmacists Association, the Retail Litigation Center, and the Michigan Retailers Association.

Bodman PLC (by James J. Walsh and Rebecca D'Arcy O'Reilly , Detroit) for amicus curiae the Small Business Association of Michigan.

Bill Schuette , Attorney General, Aaron D. Lindstrom , Solicitor General, and Susan Hellerman , Assistant Attorney General, for amicus curiae the Attorney General.

Mosby Law and Mediation (by Lori Mosby ) for amicus curiae the Michigan Association of Health Plans.

YOUNG, C.J.

This case concerns three actions — two class actions and a qui tam action brought in the name of the state of Michigan — involving allegations that multiple pharmacies in Michigan systematically violated MCL 333.17755(2) by improperly retaining savings that should have been passed on to customers when dispensing generic drugs in the place of their brand-name equivalents. Under MCL 333.17755(2), when a pharmacist receives a prescription for...

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