CVS Shares Are Falling Today: What's Going On?

Zinger Key Points

CVS Health faces allegations from the Department of Justice for violating the Controlled Substances Act and False Claims Act.
CVS shares dropped nearly 3%, reflecting ongoing investor concerns as the company disputes the claims and confronts potential penalties.
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CVS Health Corporation’s stock CVS is trading lower Thursday amid news of a lawsuit filed by the U.S. Department of Justice against CVS Pharmacy Inc., a subsidiary of CVS Health. Here’s what you need to know.

What To Know: The DOJ alleges that CVS violated the Controlled Substances Act by filling unlawful prescriptions for opioid combinations and excessive quantities since 2013. Additionally, the DOJ accuses the company of breaching the False Claims Act by seeking federal reimbursements for these prescriptions. The lawsuit is part of broader scrutiny related to the opioid crisis.

In response, CVS Health denied the allegations, with company spokesperson Amy Thibault asserting that all prescriptions were FDA-approved and issued by licensed practitioners. Despite these claims, the legal action opens the company to potential civil penalties for each unlawful prescription and damages related to federally reimbursed prescriptions.

CVS Price Action: CVS Health Corporation shares were down 2.66% at $44.08 at the time of writing, according to Benzinga Pro.