Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

CVS Caremark Reaches Civil Settlement With DOJ On RxAmerica

RELATED NEWS
Trade CVS now with 

CVS Caremark Corp. (CVS: Quote) said Monday that it has reached a civil settlement with the United States Department of Justice regarding its investigation into certain business practices of a subsidiary of Longs Drug Stores Corp. which began prior to the acquisition of Longs by CVS Caremark in October 2008. Pursuant to the settlement agreement, RxAmerica has expressly denied any liability.

The settlement resolves allegations that, in 2007 and 2008, Medicare Part D paid claims related to RxAmerica's submission of inaccurate pricing data to the Centers for Medicare & Medicaid Services for use in estimating prescription drug prices on the CMS website tool, Plan Finder, for certain generic drugs covered by a Medicare Part D Prescription Drug Plan sponsored by RxAmerica. The settlement also resolves all allegations in a related federal qui tam complaint filed by certain of the Part D Plan members.

The settlement includes a payment of $5.25 million to the Department of Justice, plus costs and other fees.

Those payments have been fully accrued for and will not affect the company's 2012 earnings results, CVS Caremark said. The company said it agreed to settle the matter in order to avoid the burden and expense of continuing litigation.

Register
To receive FREE breaking news email alerts for CVS Caremark Corp. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Stocks continue to show a lack of direction in mid-day trading on Tuesday following the long, holiday weekend. Even with the lackluster performance, the markets are largely holding on to the bulk of their recent gains. After reporting an unexpected drop in U.S. construction spending in the previous month, the Commerce Department released a report on Tuesday showing that construction spending rebounded by more than expected in the month of July. Activity in the U.S. manufacturing sector unexpectedly grew at an accelerated rate in the month of August, according to a report released by the Institute for Supply Management on Tuesday, with the index of activity in the sector climbing to a three-year high.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.