A lawsuit has been filed challenging a new Arkansas law blocking pharmacy benefit managers (PBMs) from owning retail pharmacies.
The 95-page lawsuit, filed by Missouri-based PBM Express Scripts, argues Act 624 of 2025 violates the U.S. Constitution and is unenforceable. The suit names all eight members of the Arkansas State Board of Pharmacy as defendants, as well as the board’s executive director John Kirtley.
The lawsuit alleges the state is unfairly restricting out-of-state businesses from operating in the state, in violation of the Constitution’s Commerce Clause prohibiting state laws “driven by economic protectionism.”
“If a state legislature may banish major out-of-state competitors out of concern for local, independent business interests, it could apply similar protectionist approaches in other sectors,” the lawsuit reads. “Imagine, for example, a bill that bans out-of-state movie streaming services such as Netflix from serving customers in Arkansas because movie streaming services compete with local, independent movie theaters.”
Pharmacy benefit managers serve as middlemen between drug companies and pharmacies, managing prescription drug benefits for insurers and employers. PBMs have long been a subject of debate in Arkansas, with small pharmacy owners saying they unfairly set drug prices too high.
While supported by Gov. Sarah Huckabee Sanders and a bipartisan group of lawmakers, Act 624’s rollout wasn’t without controversy; retail pharmacy giants CVS and Walgreens have said store closures could be necessary because of the new law.
The lawsuit, filed in U.S. District Court for the Eastern District of Arkansas, asks the court to declare the law unconstitutional and stop its enforcement. It also asks for the plaintiffs’ attorneys’ fees to be covered by the state.
In a statement, Arkansas Attorney General Tim Griffin said he will "vigorously defend" the law in court.
“Pharmacy benefit managers wield outsized power to reap massive profits at the expense of consumers," Griffin said. "The rise of PBMs as middlemen in the prescription drug market has resulted in patients facing fewer choices, lower quality care, and higher prices. PBMs leverage their affiliated pharmacies to manipulate prices, corrupt the market, and destroy competition."
This story was updated to include comment from Arkansas Attorney General Tim Griffin.
