VOL. 128 | NO. 151 | Monday, August 05, 2013
Drugstore Chain CVS to Pay $20 Million to Settle SEC Case
WOONSOCKET, R.I. (AP) – CVS Caremark Corp. plans to pay $20 million to resolve a Securities and Exchange Commission investigation into some public disclosures and securities deals involving emloyees, among other items.
The Woonsocket, R.I., drugstore operator said Friday it will not have to restate its earnings, and it has already set aside money for the civil penalty.
It said the agreement resolves an SEC investigation that started in 2011 and focused on some things that happened in the final two quarters of 2009.
The company said in 2011 that the SEC had asked for corporate records on several issues, including public disclosures in 2009 related to pharmacy benefits management and its Medicare prescription-drug benefit businesses.
The SEC also requested information about transactions in company securities by current and former employees and some aspects of an accounting adjustment tied to its purchase of Longs Drug Stores in 2008.
CVS Caremark said it neither admits nor denies anything in agreeing to the settlement, which resolves alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, including anti-fraud provisions.
The settlement still must receive SEC and federal court approval.
CVS Caremark runs the nation's second-largest drugstore chain, with more than 7,500 stores, and it also is one of the nation's biggest pharmacy benefits managers. PBMs runs drug plans for employers, insurers and other customers.
The company will report on its second-quarter results Tuesday.
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