Whistleblower Law Blog
CA Court of Appeals Upholds Sanctions Against Caremark for Underhanded Electronic Discovery Tactics in False Claims Act Case
A California Court of Appeals upheld sanctions against Caremark Rx, LLC for failing to preserve electronic databases of their prescription drugs in a readily-accessible format even though Caremark knew for over two years that lawsuits based on that data were imminent. The trial court found that:
- The electronic data evidence was vital to the litigation;
- Caremark had “acted in bad faith in all aspects of the production of their prescription data base;
- Caremark had consistently failed to be candid with this court as to the cost and difficulty of retrieval of their prescription data base; and
- That in light of the multiple disparate cost estimates, “given without foundation” by Caremark, the court “no longer [had] faith” in Caremark’s ability or willingness to state an accurate estimate for cost of retrieval.
The court granted plaintiff’s motion for sanctions including $43k in attorney’s fees and costs.