CVS Health Corp (NYSE:CVS) has been accused by the US Department of Justice of violating the Controlled Substances Act (CSA) and the False Claims Act (FCA).
A lawsuit filed in Rhode Island claims CVS knowingly knowingly filled prescriptions for opioids that lacked legitimate medical purposes.
CVS allegedly failed to resolve ‘red flags’ before dispensing these substances, such as excessive dosages, early refills, or signs of doctor and pharmacy shopping.
The pharmaceuticals group prioritized profits over people, alleges the Justice Department, while maintaining inadequate staffing levels, making it impossible for pharmacists to meet legal obligations while meeting corporate performance metrics.
“CVS implemented performance metrics and incentive compensation policies that it knew pressured and incentivized pharmacists to fill prescriptions as quickly as possible, without assessing their legitimacy," reads the suit.
Plaintiffs argue that CVS’s actions contributed to the opioid crisis.
“Over the past decade, hundreds of thousands of Americans have died as the result of overdoses from opioids and other controlled substances, including from the illegitimate use of prescription opioids,” reads the complaint.
As a civil suit, no criminal charges are being sought, but CVS could face hefty fines if found to have violated the CSA and FCA.