CVS Faces Federal Lawsuit Over Alleged Opioid Dispensing Missteps

CVS Health Corp., the largest pharmacy chain in the United States, faces allegations from the Department of Justice (DOJ) for unsafe opioid dispensing practices that contributed to the ongoing overdose crisis. Unsealed in federal court in Rhode Island, the lawsuit claims CVS prioritized profits over safety by deliberately understaffing stores and ignoring warning signs about improper prescriptions.

The federal lawsuit stems from a whistleblower complaint filed by Hillary Estright, a former CVS pharmacist and manager in Tennessee, under the False Claims Act. The DOJ alleges CVS’s corporate practices, including performance incentives and inadequate communication between pharmacists, enabled reckless dispensing of controlled substances. Pharmacists reportedly raised alarms about prescription abuses, but internal warnings were disregarded.

A specific case highlighted involves Texas physician Howard Diamond, whose prescriptions were filled even after his indictment for controlled substance violations. Despite repeated warnings and internal reviews, CVS continued filling prescriptions tied to known pill mill practices. Diamond ultimately pleaded guilty to related charges in 2018.

CVS denies the allegations, emphasizing its cooperation with the four-year investigation and disputing the DOJ’s standards for pharmacy practices. This lawsuit follows earlier settlements with state and local governments in 2022 over similar claims.