Justice Department Sues CVS for Violation of the Controlled Substances Act

At the end of 2024, the US Department of Justice (DOJ) filed a huge nationwide lawsuit against CVS, alleging that the pharmacy chain knowingly dispensed controlled substances in violation of both the Controlled Substances Act and the False Claims Act.

The Lawsuit

The complaint, which lists CVS pharmacies across the country, was filed in federal district court in Rhode Island. The lawsuit seeks to hold CVS accountable “for unlawfully dispensing massive quantities of opioids and other controlled substances to fuel its own profits at the expense of public health and safety.” The complaint alleges that, starting in October 2013 and continuing to the present, CVS “routinely dispensed substances pursuant to prescriptions that were not valid, were not for a medically accepted indication, were not medically necessary, and/or were not issued in the usual course of professional practice. These included illegitimate prescriptions for extremely high doses and excessive quantities of potent opioids that fed dependence and addiction, as well as illegitimate prescriptions for dangerous combinations of opioids and other drugs.”

The lawsuit notes that pharmacists are critical gatekeepers against unlawful dispensing of opioids and other controlled substances. It accuses the chain of implementing performance metrics and incentive policies while cutting staffing levels of pharmacists so low that it was impossible for them to comply with their legal obligations and meet CVS’ demanding metrics.

The complaint goes on to state that CVS pharmacists have described the work as “soul crushing” because it is impossible to meet the company’s expectations while performing the job safely and properly. The DOJ accused CVS of deliberately setting staffing levels and creating working conditions that prioritize profit over safety, leading pharmacies to dispense controlled substances pursuant to invalid prescriptions, including those from pill mill prescribers.

In addition to improperly filling prescriptions, the government alleges that Federal Healthcare Programs, including Medicare and Medicaid, were then billed for these prescriptions constituting a violation of the False Claims Act. The government is seeking civil penalties for each false claim presented, as well as an injunction and other damages.

The Takeaway

This is a very important case as it touches both on pharmacists’ working conditions and the pharmacy chain’s policies, which appear to put profit over patient safety. We will be following this closely.

References

Justice Department files nationwide lawsuit alleging CVS knowingly dispensed controlled substances in violation of the Controlled Substances Act and the False Claims Act. Press release. Office of Public Affairs, US Department of Justice. Published December 18, 2024. Accessed January 24, 2025. https://www.justice.gov/opa/pr/justice-department-files-nationwide-lawsuit-alleging-cvs-knowingly-dispensed-controlled

United States of America v CVS Pharmacy, Inc., CVS Rx Services, Inc., Alabama CVS Pharmacy, LLC, Alaska CVS Pharmacy, American Drug Stores DE, LLC, Arizona CVS Stores, LLC, Arkansas CVS Pharmacy, LLC, Busse CVS, LLC, Connecticut CVS Pharmacy, LLC, CVS 2948 Henderson, LLC, CVS Albany, LLC, CVS Indiana, LLC, CVS Manchester NH, LLC, CVS Bellmore Avenue, LLC, CVS State Capital, LLC, CVS Michigan, LLC, Idaho CVS Pharmacy, LLC, Delaware CVS Pharmacy, LLC, District of Columbia CVS Pharmacy, LLC, Garfield Beach CVS, LLC, Georgia CVS Pharmacy, LLC, German Dobson CVS, LLC, Goodyear CVS, LLC, Grand St. Paul CVS, LLC, Highland Park CVS, LLC, Holiday CVS, LLC, Hook-SuperX, LLC, Iowa CVS Pharmacy, LLC, Kansas CVS Pharmacy, LLC, Kentucky CVS Pharmacy, LLC, Drug Stores California, LLC, Louisiana CVS Pharmacy, LLC, Maryland CVS Pharmacy, LLC, Mississippi CVS Pharmacy, LLC, Missouri CVS Pharmacy, LLC, Montana CVS Pharmacy, LLC, Navarro Discount Pharmacies, Inc., Nebraska CVS Pharmacy, LLC, Nevada CVS Pharmacy, LLC, New Jersey CVS Pharmacy, LLC, North Carolina CVS Pharmacy, LLC, Ohio CVS Stores, LLC, Oklahoma CVS Pharmacy, LLC, Oregon CVS Pharmacy, LLC, Pennsylvania CVS Pharmacy, LLC, Rhode Island CVS Pharmacy, LLC, Sheffield Avenue CVS, LLC, South Carolina CVS Pharmacy, LLC, South Wabash CVS, LLC, Tennessee CVS Pharmacy, LLC, Thomas Phoenix CVS, LLC, Utah CVS Pharmacy, LLC, Vermont CVS Pharmacy, LLC, Virginia CVS Pharmacy, LLC, Warm Springs Road CVS, LLC, Washington CVS Pharmacy, LLC, Washington Lamb CVS, LLC, West Virginia CVS Pharmacy, LLC, Wisconsin CVS Pharmacy, LLC, Woodward Detroit CVS, LLC. No 22-cv-222-WES-PAS. United States District Court for the District of Rhode Island; 2024. https://www.justice.gov/opa/media/1381111/dl