02:11 PM EDT, 10/03/2024 (MT Newswires) -- (Updates with CVS' response in the fifth and sixth paragraphs.)

Eli Lilly ( LLY ) , CVS's (CVS) pharmacy unit and other drug companies and pharmacy benefit managers have been sued by Texas Attorney General Ken Paxton for allegedly inflating insulin prices, Paxton's office said Thursday.

Paxton accused the major insulin manufacturers of "artificially and willingly" raising prices and then paying pharmacy benefit managers "significant" amounts for preferred status in their standard offerings.

Insulin prices have been raised by as much as 1,000% over the last decade, Paxton said, in what he described as a "disturbing conspiracy."

"Big Pharma insulin manufacturers and PBMs worked together to take advantage of diabetes patients and drive prices as high as they could" in violation of the Texas Deceptive Trade Practices Act, Paxton said.

CVS told MT Newswires it is not involved in drug manufacturers' price setting.

"Allegations that we play any role in determining the prices charged by manufacturers for their products are false, and we intend to vigorously defend against this baseless suit," CVS said in a statement.

Eli Lilly ( LLY ) did not immediately respond to MT Newswires' request for comment.

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