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CVS to Pay $77.6 Million in Meth Ingredient Case

By Leeds Brown Law | November 4, 2010

CVS says it will institute new controls and has agreed to pay $77.6 million to resolve an investigation in which Pseudoephedrine was found to be used in methamphetamine production. Illegal sales practices by CVS Pharmacy Inc. allowed criminals to make mass purchases of a component used in the manufacturer of methamphetamine. The company’s improper sales of pseudoephedrine, an ingredient found in cold and sinus medicines, led directly to an increase in methamphetamine production in California, said the U.S. attorney’s office in Los Angeles, California. CVS is the biggest operator of retail pharmacies in the United States. “This case shows what happens when companies fail to follow their ethical and legal responsibilities,” said U.S. Attorney Andre Birotte Jr. The company will not face criminal charges; instead it will implement a compliance and ethics program over the next three years, prosecutors said. Read full article

Employers who fail to follow ethical and legal responsibilities put the careers as well as rights of their employees at risk. Under the Worker Adjustment and Retraining Notification Act (WARN) (29 USC §2101; 20 CFR Part 639() the law protects workers, their families, and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and mass layoffs. Advance notice gives workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain other jobs and, if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market. WARN also provides for notice to state dislocated worker units so that they can promptly offer dislocated worker assistance. WARN does not apply to closure of temporary facilities, or the completion of an activity when the workers were hired only for the duration of that activity. WARN also provides for less than 60 days notice when the layoffs resulted from closure of a faltering company, unforeseeable business circumstances, or natural disaster.

Leeds Morelli & Brown, PC lawyers specialize in matters related to wrongful termination, unjust dismissal, in handling overtime claims, wage and hour law violations, and unemployment compensation claims. Leeds Morelli & Brown, PC lawyers service injured parties who have been affected by employers who violate these important equal opportunity and employment rights throughout Long Island, the New York City area. For a free consultation, contact Leeds Morelli & Brown, PC at 1-800-585-4658 begin_of_the_skype_highlighting.

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