Costco to Pay $12 Million Penalty for Poor Pharmacy Controls

Associated Press

SEATTLE -- Costco Wholesale Corp. has agreed to pay nearly $12 million to settle Justice Department allegations of lax pharmacy controls over a four-year period.

The Issaquah, Wash.-based company acknowledges in the settlement announced Thursday that some of its pharmacies improperly filled prescriptions, kept poor records or failed to adequately track inventory between the start of 2012 and the end of 2015.

The case grew out of separate investigations conducted by federal authorities in Washington, Michigan and California.

Seattle U.S. Attorney Annette Hayes said good pharmacy controls are key to battling the nation's prescription-drug abuse crisis. Ms. Hayes said companies like Costco, which deliver huge volumes of the drugs, have a responsibility to help keep such drugs from reaching the black market.

Costco has invested in a new, $127 million pharmacy management system and adopted new audit protocols.

(END) Dow Jones Newswires

January 19, 2017 14:49 ET (19:49 GMT)

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