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.
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by RTT Staff Writer
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