DOJ files suit against CVS for illegal opioid prescriptions

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why CVS is in trouble with the DOJ.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange.

00:02Here's what we're watching on the street today.

00:05There's a rebound on Wall Street Thursday,

00:07one day after stocks suffered their biggest drops

00:09since August.

00:11Investors are coping with the new reality

00:13that 2025 might see fewer than expected interest rate cuts.

00:17New data may support the Federal Reserve's new projection.

00:21Economic growth figures for the third quarter

00:23were upwardly revised, pointing to an economy that's

00:26stronger than expected.

00:29In other news, the Department of Justice

00:30is going after CVS in a lawsuit, claiming the drugstore chain

00:34is fueling the opioid epidemic.

00:36The DOJ accuses CVS of filling illegal opioid prescriptions

00:41and charging government health insurance plans.

00:44The complaint, which was filed in federal court,

00:46accuses CVS of violating the Federal Controlled Substance

00:49Act.

00:50It alleges that starting back in 2013,

00:52CVS turned a blind eye to prescription requests coming

00:56from so-called pill mills.

00:58That's a large number of prescriptions

01:00filled by doctors for addictive drugs like opioids

01:03without legitimate medical reasons.

01:06The DOJ claims CVS was driven by performance metrics, which

01:09encouraged pharmacists to work quickly and ask few questions.

01:14The lawsuit alleges the practice even resulted in deaths

01:18by overdose.

01:19CVS responded to the lawsuit in a statement, quote,

01:22we strongly disagree with the allegations and false

01:25narratives in this complaint.

01:28In 2022, CVS agreed to pay $5 billion

01:31over 10 years to settle similar accusations

01:34made by state, local, and Native American tribal governments.

01:39That'll do it for your daily briefing from the New York

01:41Stock Exchange.

01:42I'm Conway Gittins with The Street.