Jersey will get paid by Rite Aid

John O'Brien Jun. 24, 2008, 1:20pm


NEWARK, N.J. (Legal Newsline) - The State of New Jersey settled its case against Rite Aid Corp. Monday, resolving allegations that the pharmacy chain sold expired products.

Rite Aid, also under investigation by New York Attorney General Andrew Cuomo, will pay $475,000 to New Jersey, state Attorney General Anne Milgram said.

"Expired products have no place on the shelves of New Jersey stores, and as this settlement makes clear, the law requires Rite Aid to make sure product dates are checked and requires that out-of-date products are not offered for sale," Milgram said.

Eckerd Corp. also entered into the settlement. It was purchased by Rite Aid in 2007, and Milgram said it also sold expired and/or incorrectly priced non-prescription drugs, infant formula and baby food.

Should Rite Aid not abide by the terms of the settlement in the next year, it will have to pay an additional $175,000 penalty. Rite Aid admitted to no wrongdoing.

Cuomo is investigating both Rite Aid and CVS pharmacies. California Attorney General Jerry Brown has warned CVS to pull expired products off its shelves.

New Jersey's suit was filed in Oct. 2006. The State settled similar allegations against Duane Reade International, Inc., in Nov. 2007 for $200,000.

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