Company enters into consent order relating to business practices of subsidiary company that occurred prior to acquisition by CVS Caremark
No allegations of antitrust law violations or anti-competitive behavior related to CVS Caremark's business practices, products or service offerings are made
WOONSOCKET, R.I., Jan. 12, 2012 /PRNewswire/ -- CVS Caremark Corporation (NYSE: CVS) announced today that the Federal Trade Commission (FTC) has concluded its investigation under the Federal Trade Commission Act into the company's business practices. The investigation has resulted in CVS Caremark entering into a consent order that relates to certain business practices of a subsidiary of Longs Drug Stores Corporation, which took place prior to the acquisition of Longs by CVS Caremark in October 2008. There were no allegations of antitrust law violations or anti-competitive behavior related to CVS Caremark's business practices or its products or service offerings. In addition, the Company has received a formal letter from the FTC closing all other aspects of the investigation.
Pursuant to the consent order, CVS Caremark will deposit $5 million into a fund that will be used to compensate consumers who purchased coverage for the 2008 plan year from a Medicare Part D Prescription Drug Plan sponsored by Rx America, a subsidiary of Longs. The fund is being established as a result of Rx America inadvertently posting on a website maintained by the Centers for Medicare and Medicaid Services (CMS) inaccurate pricing information for certain generic drugs. In addition, CVS Caremark agreed on a go forward basis to refrain from making any misrepresentations regarding drug pricing information relating to affiliate sponsored Medicare Part D plans. The consent order will be published in the Federal Register and is subject to comment for 30 days.
"CVS Caremark is pleased to have reached an agreement with the FTC that ends the investigation and enables us to continue our focus on offering unique, innovative products and services that differentiate us and benefit consumers," said Larry Merlo, President and Chief Executive Officer of CVS Caremark. "We remain committed to delivering the best possible pharmacy care by driving down health care costs, expanding consumer access and improving health care outcomes.
"During the course of this two year investigation, our company cooperated fully with the FTC and provided to the government millions of documents as well as access to numerous members of our management team who participated in voluntary interviews and depositions," said Douglas A. Sgarro, Executive Vice President and Chief Legal Officer of CVS Caremark. "It is important to note that, at the conclusion of this comprehensive investigation, the FTC made no allegations of antitrust law violations or anti-competitive behavior associated with any of our business practices, products or service offerings."
About CVS Caremark
CVS Caremark is the largest pharmacy health care provider in the United States with integrated offerings across the entire spectrum of pharmacy care. We are uniquely positioned to engage plan members in behaviors that improve their health and to lower overall health care costs for health plans, plan sponsors and their members. CVS Caremark is a market leader in mail order pharmacy, retail pharmacy, specialty pharmacy, and retail clinics, and is a leading provider of Medicare Part D Prescription Drug Plans. As one of the country's largest pharmacy benefits managers (PBMs), we provide access to a network of approximately 65,000 pharmacies, including more than 7,300 CVS/pharmacy® stores that provide unparalleled service and capabilities. Our clinical offerings include our signature Pharmacy Advisor™ program as well as innovative generic step therapy and genetic benefit management programs that promote more cost effective and healthier behaviors and improve health care outcomes. General information about CVS Caremark is available through the Company's website at http://info.cvscaremark.com/.
Eileen Howard Boone
SOURCE CVS Caremark