Shekarchi Suing CVS on Behalf of Union Claiming RICO Violation
Speaker of the House and attorney Joseph Shekarchi PHOTO: GoLocal’s Richard McCaffrey
Rhode Island Speaker of the House Joseph Shekarchi is suing CVS Health Corporation on behalf of a national union, alleging that the company, one of the state’s largest employers, perpetrated fraud and “operated a RICO enterprise” as it pertained to prescription benefit management (PBM) contracts.
Shekarchi is part of a legal team that has filed a juggernaut lawsuit against CVS, and he is acting as a private attorney and not in his role as the Speaker. The lawsuit was filed in the federal district court in Rhode Island on Wednesday.
“Racketeer Influenced and Corrupt Organizations” is referenced 20 times in the 77-page class action complaint filed on Wednesday by the “Roofers’ Unions Welfare Trust Fund” in the United States District Court of Rhode Island, of which Shekarchi is the local counsel on behalf of national firms in Illinois, New Jersey, Pennsylvania, and Washington, DC.
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The complaint alleges CVS operated PBM contracts between Caremark and the Class “that falsely and/or misleadingly conceal Caremark’s side agreements with the drug companies that participate in the PBM Fraud Enterprises to give favorable formulary placements in return for bribes and kickbacks to Defendants through Zinc.”
The roofers union is part of the class; Zinc is a pharmacy benefit manager that is at the center of a scathing report issued in 2024 by the Federal Trade Commission (FTC) detailing how increasing vertical integration and concentration has enabled the six largest PBMs – which includes Zinc – to manage nearly 95 percent of all prescriptions filled in the United States. READ MORE
Roofers lawsuit against mulitple claims including a civil RICO Violation SOURCE: U.S. Federal Court Filing
Specifically, the lawsuit maintains that Zinc is a “fake GPO” a group purchasing organization – in order to “implement [a] formulary manipulation scheme.”
Shekarchi on Record – and CVS in Focus
When reached for comment, Shekarchi called the filing of the lawsuit on behalf of the union against CVS a “private law matter.”
Shekarchi said he was “not aware of any CVS legislative bills before the General Assembly.”
According to data maintained by the Rhode Island Board of Elections, CVS’ “Rhode Island State PAC” alone has given over $117,000 to candidates and elected officials for the period it has recorded contributions online.
State records show that former State Senator-turned-lobbyist Bob Goldberg received $33,333.32 in February alone from CVS Health for his government relations fee.
In his report, Goldberg had to disclose which bills he is “watching” at the General Assembly this session – which, in February, he listed none.
The other registered lobbyist in Rhode Island for CVS Health is Steve Larrabee, who, in his February report, specifically listed eight specific bills he was “watching” on behalf of CVS Health – including four House bills. The fate of those bills is decided in part by Shekarchi.
Over the years, Shekarchi has received $10,150 from CVS employees, $7,000 from the CVS PAC and $8,675 from Goldberg.
This story was first reported 3/18/26 at 3:10 PM
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