logo
Share SHARE
FONT-SIZE Plus   Neg

CVS Caremark Reaches $11 Mln Settlement With US DoJ For Drug Law Violations

The U.S. Department of Justice announced Wednesday that drug store chain CVS Caremark Corp. (CVS: Quote) has agreed to pay a fine of $11 million to settle civil penalty claims involving violations of Controlled Substances Act. This is one of the largest settlements ever paid for record-keeping violations by a retail pharmacy chain related to controlled pharmaceuticals.

The settlement was announced by U.S. Attorney for the Western District of Oklahoma Sanford Coats. CVS acknowledged that its stores must comply with the record-keeping requirements, but did not admit liability.

"The abuse of prescription drugs is a well-documented epidemic inflicting devastating, long-term, effects on individuals, families, and entire communities. To combat this problem, it is essential that those who dispense controlled substances comply with DEA's record-keeping requirements," Coats said in a statement.

The settlement resolves allegations that the company's Oklahoma pharmacies violated the Controlled Substances Act by failing to keep proper records of pharmacy drug sales.

The Act calls for pharmacies to document each transaction that involves controlled substances or powerful prescription drugs, along with the U.S. Drug Enforcement Administration or DEA, registration numbers of the doctors prescribing those drugs.

Each DEA registrant, including pharmacies, is required to maintain complete and accurate records of each substance manufactured, received, sold, delivered, dispensed or otherwise disposed of by the registrant for two years.

The process ensures that dispensers of prescription drugs remain accountable and these drugs are not illegally diverted to addicts and street dealers. The DoJ noted that abuse of prescription drugs is one of the most critical issues it faces currently.

The Woonsocket, Rhode Island-based company was charged of using dummy registration numbers for prescriptions, and filling prescriptions written by doctors whose DEA registrations were no longer valid. These violations occurred between October 2005 to October 2011 at two CVS pharmacies in Oklahoma.

The Acting Special Agent in Charge of the DEA Dallas Field Division, Daniel Salter, said, "This settlement reinforces the responsibilities of all pharmacies to prevent the diversion of dangerous drugs. This case highlights DEA's steadfast resolve to combat the growing prescription drug abuse problem in this country by ensuring that all DEA registrants, including nationwide pharmacy chains, are in compliance with the law. This is vital to protect public health and keep our communities safe."

CVS closed Wednesday's regular trading session at $54.13, down $1.11 or 2.01% on a volume of 6.75 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Internet giant Google Inc. (GOOGL, GOOG) has launched a new online flight search tool that makes it easy to find out the best flight deal. The tool dubbed "Google Flights" provides a calendar that one can scroll through and see the lowest fare highlighted for each day. One can also use the lowest... Hyperloop Transportation Technologies, a start-up that has adopted Elon Musk's ambitious project of high-speed transportation system, plans to build a Hyperloop test track in California and completed as early as 2016. Hyperloop Test Technologies, a crowd-funded company, plans to take Musk's dream... Colors have set the social media afire after an otherwise innocuous photo of a bodycon dress kept users guessing as to what hues permeate it. Opinions are divided, with some seeing the dress as white and gold, and others as blue and black. The photo was posted on Tumblr by a user called Swiked.
comments powered by Disqus
RELATED NEWS
Trade CVS now with 
Follow RTT