The U.S. Department of Justice filed a civil complaint against CVS Pharmacy Inc owned by CVS Health Corp (NYSE:CVS), alleging the nation's largest pharmacy chain violated the Controlled Substances Act by filling unlawful prescriptions for dangerous opioid combinations and quantities from 2013 onwards.
The complaint also accuses CVS of violating the False Claims Act by seeking federal reimbursement for these prescriptions.
The legal action follows McKinsey & Company's recent settlement over its role in Purdue Pharma's OxyContin sales.
CVS strongly disputes the allegations, with spokesperson Amy Thibault emphasizing that all prescriptions were FDA-approved and written by government-licensed practitioners, according to the Associated Press.
The company faces potential civil penalties for each unlawful prescription and additional damages for federally reimbursed prescriptions.
Price Action: CVS Health Corp's stock closed at $45.28 on Wednesday, up 2.82% for the day. In after-hours trading, the stock gained an additional 0.24%. Year-to-date, the stock has declined 44.00%.
CVS stock has traded within a 52-week range of $43.93 to $83.25 and currently has a price-to-earnings ratio of 11.50, according to data from Benzinga Pro.
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