Costco Wholesale, Pharmacy Violations, California 2015

Grimy Times has learned that Costco Wholesale will pay a hefty sum of $11.75 million to settle allegations that its pharmacies violated the Controlled Substances Act (CSA) when they improperly filled prescriptions for controlled substances.

The settlement resolves allegations that 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.

U.S. Attorneys Annette L. Hayes for the Western District of Washington, Michael C. Ormsby for the Eastern District of Washington, Eileen M. Decker for the Central District of California, Barbara L. McQuade for the Eastern District of Michigan, and Phillip A. Talbert for the Eastern District of California announced the settlement.

“Pharmacies are the gatekeepers responsible for ensuring the lawful use of powerful drugs that have a legitimate medical purpose but are easily abused,” said U.S. Attorney Talbert. “The CSA provides the statutory oversight to ensure that pharmacies keep meticulous records.”

“Last year, over 50,000 Americans died as a result of drug overdoses, many of which were related to the misuse of prescription drugs,” said DEA Assistant Administrator Louis Milione. “This settlement demonstrates the accountability and responsibility that go along with handling controlled prescription drugs.”

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.

“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,” said U.S. Attorney McQuade. “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.”

Costco’s failure to have proper controls in place in its pharmacies played a role in prescription drugs reaching the black market, according to U.S. Attorney Decker. “These are not just administrative or paperwork violations,” she said.

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