CVS Pharmacy Pays $315 Million to Settle Opioid Lawsuit

CVS Pharmacy Inc. and its subsidiaries agreed to pay $315 million to settle a lawsuit brought by the United States Department of Justice. The federal government alleged that the company violated the Controlled Substances Act by filling high-dose opioid prescriptions from known pill mills to increase profits, contributing to the national addiction and overdose crisis.

The Justice Department claimed that incentive-based performance metrics and poor staffing pressured pharmacists to dispense medications without verifying their legitimacy. These actions often involved billing Medicaid and other federal programs for medically unnecessary prescriptions. While CVS denies any wrongdoing and asserts its pharmacists received proper training, the company agreed to the settlement to resolve the 2024 lawsuit.

As part of the agreement, CVS must implement additional safeguards to ensure controlled substances are dispensed only when medically appropriate. Associate Attorney General Stanley Woodward Jr. described the settlement as a significant milestone in the government's efforts to crack down on pharmacies that unlawfully fulfill prescriptions for controlled substances.