A class action has been filed against CVS Corporation, Trio Drugs Corporation, and Manhattan pharmacist Gerald Hinderstein on behalf of pharmacy customers who allege that Trio and its pharmacist violated their fiduciary duties to their customers and committed deceptive business practices when they sold prescription drug records to CVS. The action seeks unspecified compensatory and punitive damages.
The action allegedly involves prescription drug records in just one of scores of CVS file buys in New York state since at least 1993, involving hundreds of thousands of patients' confidential files. The sales by Trio allegedly occurred after the closure of a Manhattan store. The action alleges that CVS improperly used the customer data to identify new prospects and mine other information.
In a recent hearing, the court found that a class of pharmacy customers, represented by an unnamed individual with AIDS, were entitled to summary judgment on their claims against Trio Drugs Corporation and its pharmacist, who sold his prescription drug records in what is known as a "file buy." The court found the class was entitled to an injunction to prevent improper use of the records and nominal damages.
The court went on to find that Trio had a duty to keep its patients' information confidential and that duty was violated when it sold its customers' prescription information without prior notice to or consent of its customers. The court also found that Trio had a fiduciary duty to its customers, despite the fact that the scope of that duty under New York law was previously undefined.
A trial on the inducement claims against CVS, as well as a hearing on the extent of the damages and injunctive relief to be awarded, is scheduled for January 26, 2004.