WOONSOCKET, R.I., Oct. 14 (UPI) -- CVS/pharmacy said Thursday it has agreed to pay nearly $78 million to settle allegations it failed to properly monitor sales of pseudoephedrine.
PSE is found in popular over-the-counter cold and cough medicines. It also is a "precursor" drug in the making of methamphetamine and methcathinone, or meth.
The settlement was made with the U.S. Drug Enforcement Administration and U.S. attorney's offices in Los Angeles and Las Vegas, and involved $75 million in civil penalties and $2.6 million in profit forfeitures, CVS said it would also maintain compliance measures to monitor and prevent excessive sales of PSE.
The settlement, which also acknowledges that a distribution center in California failed to monitor and report excessive PSE sales by CVS/pharmacy stores, relates only to the retail pharmacy business.
Other parts of the allegation involve sales of PSE in stores in California and Nevada in 2007 and 2008.
CVS said the excessive sales occurred primarily in California and Nevada, but the settlement includes not only federal jurisdictions in California and Nevada, but also federal jurisdictions in 23 other states where the system was not implemented properly.
The Rhode Island-based company said the settlement does not impact any other business conducted by CVS Caremark or any of its affiliated companies, was previously disclosed, and should have no further effect on the company's financial results.