Drug store chain settles with N.J.

John O'Brien Nov. 19, 2007, 2:55pm


NEWARK, N.J. - Duane Reade International has settled allegations brought against it by the New Jersey Attorney General's office that it sold expired baby food and formula.

Without admitting wrongdoing, the pharmacy agreed on Monday to pay a $175,000 civil penalty and $25,000 for investigative costs and attorneys fees. Duane Reade was also alleged to have sold expired and/or mispriced non-prescription drugs.

"Manufacturers put expiration dates on their products for a reason and this agreement puts the onus on Duane Reade to ensure that no out-of-date products are available to consumers," state Attorney General Anne Milgram said.

"We will be monitoring the company to ensure Duane Reade abides by this agreement."

If the company breaks the agreement and participates in the alleged behavior within the next year, it faces another $100,000 civil penalty.

Duane Reade is the largest drug store chain in the New York metropolitan area. It operates 241 stores.

The suit against it was filed in December in state Superior Court. Three months earlier, it had paid $50,000 to New Jersey in a voluntary settlement that, at the time, appeared to end the matter. A press release from Attorney General's office claimed it concluded an investigation into the sales of expired products.

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