CVS to Pay Fine for Sale of Meth Ingredient
Saturday, October 16, 2010
CVS Caremark, the Woonsocket-based pharmaceutical corporation, has agreed to pay the U.S. federal government $75 million in civil penalties and $2.6 million in profit forfeits for the unlawful sales of pseudoephedrine (PSE) in 2007 and 2008.
The fines are in response to allegations that certain CVS stores, primarily located in California and Nevada, conducted excessive sales of PSE, a key ingredient in the production of methamphetamine. The excessive sales also took place in twenty-three other states.
Due to flaws in the store's electronic monitoring system, individuals were able to purchase more than the legal daily limit for PSE, making certain stores vulnerable to criminals who intended to illegally produce and sell meth.
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Thomas M. Ryan, Chairman and CEO of CVS Caremark, said the company will continue to fully cooperate with policies put forth by the U.S. Drug Enforcement Administration (DEA) and has already taken measures to improve their drug sales monitoring.
"To make certain this kind of lapse never takes place again, we have strengthened our internal controls and compliance measures and made substantial investments to improve our handling and monitoring of PSE by implementing enhanced technology and making other improvements to our stores and distribution centers," said Ryan.