The U.S. Department of Justice announced a lawsuit against CVS.
Transcript:
Conway Gittens: There’s a rebound on Wall Street Thursday, one-day after stocks suffered their biggest drops since August. Investors are coping with the new reality that 2025 might see fewer-than-expected interest rate cuts. New data may support the Federal Reserve’s new projection. Economic growth figures for the third-quarter were upwardly revised, pointing to an economy that’s stronger than expected.
In other news, The Department of Justice is going after CVS CVS in a lawsuit, claiming the drugstore chain is fueling the opioid epidemic. The DOJ accuses CVS of filling illegal opioid prescriptions and charging government health insurance plans.
The complaint, which was filed in federal court, accuses CVS of violating the federal Controlled Substance Act. It alleges that starting back in 2013, CVS turned a blind eye to prescription requests coming from so-called pill mills; that’s a large number of prescriptions filled by doctors for addictive drugs like opioids without legitimate medical reasons.
The DOJ claims CVS was driven by performance metrics, which encouraged pharmacists to work quickly and ask few questions. The lawsuit alleges the practice even resulted in deaths by overdose.
CVS responded to the lawsuit in a statement, “We strongly disagree with the allegations and false narratives in this complaint.”
In 2022, CVS agreed to pay $5 billion over 10 years to settle similar accusations made by state, local, and Native American Tribal governments.
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