Insurers Win First Rounds in Court Battle with Cal-Pharm

California Pharmacy Management is on a losing streak in court battles over its contracts with physicians that supplied costly repackaged drugs to injured workers.A federal judge last week dismissed a lawsuit filed by Cal-Pharm that accused insurance subsidiaries of Berkshire Hathaway of violating the Racketeer Influenced and Corrupt Organizations Act (RICO) by conspiring to deny payment of its bills for repackaged drugs. The judge, however, granted Cal-Pharm leave to amend its civil complaint and try again.“We intend to file an amended complaint and an appeal, if necessary,” said C...