The city of Lansing [Michigan] is suing several major pharmacies including CVS, Walgreen’s and Rite Aid, claiming that they have overcharged city workers for generic prescriptions.

WLNS, the CBS affiliate in Lansing, reports the city and lawyers for the pharmacies were in court on Tuesday. Lansing is a self insurer, meaning it handles all the insurance claims for its covered employees, including paying vendors, such as doctors, pharmacies and hospitals.

City Attorney Brig Smith tells the television station that Michigan is one of three states that caps the amount of profit pharmacies can make on generic drugs. And Smith filed the suit under this law.More »