CVS Caremark Reaches Civil Pact with DoJ; Won't Affect 2012 Earnings
CVS Caremark Corporation (NYSE: CVS) announced today 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 Corporation 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 ("CMS") 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. These RxAmerica Plan Finder submissions were previously the subject of the CVS Caremark consent order with the Federal Trade Commission earlier in 2012.
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