SACRAMENTO, Calif. — In a shocking revelation, Costco Wholesale has agreed to pay $11.75 million to settle allegations that its pharmacies violated the Controlled Substances Act (CSA) when they improperly filled prescriptions for controlled substances.
According to a statement from the U.S. Attorneys, Costco pharmacies filled prescriptions that were incomplete, lacked valid DEA registration numbers or were for substances beyond various doctors’ scope of practice. Additionally, the settlement resolves allegations that Costco failed to keep and maintain accurate records for controlled substances at its pharmacies and centralized fill locations, which resulted in a significant shortage at the West Sacramento central fill pharmacy.
“Pharmacies are the gatekeepers responsible for ensuring the lawful use of powerful drugs that have a legitimate medical purpose but are easily abused. The CSA provides the statutory oversight to ensure that pharmacies keep meticulous records,” U.S. Attorney Phillip A. Talbert stated.
“Last year, over 50,000 Americans died as a result of drug overdoses, many of which were related to the misuse of prescription drugs. This settlement demonstrates the accountability and responsibility that go along with handling controlled prescription drugs,” said DEA Assistant Administrator Louis Milione.
Under the settlement reached January 18, 2017, Costco acknowledges that between January 1, 2012, and December 31, 2015, certain Costco pharmacies dispensed controlled substances inconsistent with their compliance obligations under the CSA and its implementing regulations. The violations include: filling prescriptions from practitioners who did not have a valid DEA number; incorrectly recording the practitioner’s DEA number; filling prescriptions outside the scope of a practitioner’s DEA registration; filling prescriptions that did not contain all the required information; failing to maintain accurate dispensing records; and failing to maintain records for their central fill locations in Sacramento, California and Everett, Washington.
“In light of the prescription pill and opioid overdose epidemic we are seeing across the country, compliance with regulations governing pharmacies is more important than ever. We applaud Costco for working with DEA and taking steps to tighten up its compliance to ensure that prescription pills do not end up on the street market,” said U.S. Attorney Barbara L. McQuade.
Defendant: Costco Wholesale, a legal entity name. Criminal charges: Controlled Substances Act Violations. City and state: Sacramento, California. Exact date: January 18, 2017. Sentence or outcome: $11.75 million settlement. Dollar amount: $11.75 million.
U.S. Attorney Eileen M. Decker stated, “These are not just administrative or paperwork violations — Costco’s failure to have proper controls in place in its pharmacies played a role in prescription drugs reaching the black market.”
Related Federal Cases
- Costco Wholesale, Pharmacy Violations, California 2015 · Washington
- McKesson Corporation, Failure to Report Suspicious Controlled Substances, California 2013 · Florida
- Costco Wholesale, Lax Pharmacy Controls, California 2015 · Washington
- Thomas Keller, Controlled Substance Distribution, California 2023 · Alaska
- Costco Wholesale, Lax Pharmacy Controls, Washington 2017 · Washington
Key Facts
- State: California
- Category: Drug Trafficking
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
Drug TraffickingDrug TraffickingDrug TraffickingDrug Trafficking