The Justice Department announced Tuesday that CVS Health agreed to pay $315 million to settle lawsuits alleging illegal dispensing of opioids and other controlled substances. The settlement resolves a lawsuit that former CVS employee Hillary Estright filed in 2019 under the whistleblower provision of the False Claims Act. The provision allows private parties to sue on behalf of the United States. The settlement also resolves the federal government's ensuing 2024 complaint against CVS Health.
The allegations included claims that CVS knowingly filled controlled-substance prescriptions that had no legitimate medical purpose, were invalid or were not issued through common professional practices. CVS Health's corporate performance metrics allegedly encouraged these actions to increase profit. The settlement does not constitute an admission of guilt by CVS Health. The settlement also does not reverse the federal government's position that the claims against CVS Health were well-founded. CVS Health maintains that the company disagrees with the allegations.
Assistant Attorney General Brett A. Shumate said the settlement requires CVS to implement additional safeguards to dispense opioids and other controlled substances only when medically appropriate. Shumate said remedial measures, including proactive monitoring of opioid prescribing patterns, will provide critical protections for patients and federal healthcare programs. Shumate said the Justice Department will continue taking steps to prevent unlawful opioid dispensing.
CVS Health said Tuesday that the company's more than 27,000 pharmacists are highly trained in the safe and appropriate use of all medications. CVS Health said the company has implemented programs to help pharmacists make the best decisions for patients. CVS Health described those programs as best-in-class and first-of-their-kind. CVS Health said the company strongly disagrees with the claims and that the settlement admits no wrongdoing. CVS Health said the company was pleased to move forward and end the litigation.
CVS previously agreed to pay $4.9 billion to states and political subdivisions in 2022 to settle a similar lawsuit. Walgreens and Kroger have also agreed to opioid-related settlements in recent years. Walmart agreed to an opioid-related settlement this past August.
CVS to Pay $315M in Opioid Prescription Settlement
FLASH AIShare
Summary
CVS Health agreed to pay $315 million to settle opioid-related lawsuits, including a 2019 whistleblower case and a 2024 federal complaint. The Justice Department said the deal requires stronger CFT measures for opioid dispensing. CVS denies wrongdoing and says the settlement does not admit liability. The case could affect liquidity in related markets, including crypto markets, as regulatory scrutiny expands.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.