Kroger, CVS, and Walgreens settle lawsuit with West Virginia for $3 million

Published: Aug. 16, 2016 at 1:35 PM EDT
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Kroger, CVS, and Walgreens have settled a lawsuit with West Virginia over prescription drugs for about $3 million, according to West Virginia Attorney General Patrick Morrisey.

This is the latest development in a lawsuit that targeted five defendants over cost savings derived from the sale of generic prescription drugs.

Morrisey announced combined settlements of nearly $3 million to resolve disputes with Kroger, CVS and Walgreens, pushing total settlements in the broader case past $7.8 million.

The settlements require Kroger, CVS and Walgreens to pay their respective amounts and implement compliance programs in accordance with the state’s Pharmacy Act, which requires pharmacies to pass retail savings from the sale of generic prescription drugs onto consumers.

“All companies operating in West Virginia must respect her laws,” Attorney General Morrisey said. “These settlements demonstrate our commitment to vigorously enforce the law.”

The Kroger, CVS and Walgreens agreements follow a $4.9 million settlement with Rite Aid. Litigation against the remaining defendant continues in Boone Circuit Court.

The lawsuit alleged the pharmacies failed to accurately calculate and pass along retail savings from the sale of generic prescription drugs. It further alleges each instance constituted a violation of the state’s Consumer Credit and Protection Act.

Kroger, CVS and Walgreens deny any wrongdoing as part of the settlement. Parties agreed to the financial payout and implementation of the pharmacies’ compliance programs to avoid the distraction and expense of continued litigation.

Kroger, CVS and Walgreens must implement and execute their compliance programs within two years of the settlement. The programs’ scopes are limited to those customers whose transactions are not covered by insurance.

Individually, the settlements are valued at $1,352,941.18 with Kroger, $1 million with CVS and $575,000 with Walgreens.

You can view copies of the executed agreements with each company in the 'Related Links' section of this article.