Department of Justice Accuses Rite Aid For Ignoring Obvious Signs Of Opioid Misuse
- The U.S. government reportedly sued Rite Aid Corp (NYSE: RAD), saying the company missed "red flags" as it illegally filled prescriptions for controlled substances, including opioids.
- The Justice Department joined a whistleblower lawsuit filed in 2019 by two pharmacists and a pharmacy technician from Rite Aid stores in Pennsylvania, North Carolina, and West Virginia.
- The Justice Department accused Rite Aid of violating the federal False Claims Act by submitting false prescription claims to government healthcare programs, Reuters reported.
- Also Read: New York Governor, Attorney General Ask Three Pharmacy Operators' Commitment Over Abortion Drug Access.
- In a complaint filed in Cleveland federal court, the Department of Justice said Rite Aid repeatedly filled prescriptions from May 2014 to June 2019 for medically unnecessary, off-label use or not issued in the usual course of professional practice for "trinities," a combination of opioids, benzodiazepine, and muscle relaxants preferred by drug abusers for their increased euphoric effect.
- The Justice Department also said Rite Aid intentionally deleted some pharmacists' internal warnings about suspicious prescribers, such as "cash only pill mill?"
- "These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid's stores," Associate Attorney General Vanita Gupta said.
- Price Action: RAD shares closed at $3.28 on Monday.
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