FINANCE

Walgreens reaches $80M settlement with DEA

BY Staff Writer

Deerfield, Ill. — Walgreens will pay $80 million as part of a settlement with the Drug Enforcement Agency (DEA) over a failure to report unusually large shipments of prescription painkillers from a distribution center in Jupiter, Fla. Six Walgreens pharmacies in Florida received tens of thousands of orders for regulated painkillers that were up three times the normal size, but the distribution center did not report them to the DEA as they were required to by law.

In a press release, Kermit Crawford, president of pharmacy, health and wellness for Walgreens, said his company has resolved all administrative and civil matters relating to this investigation with the settlement.

“As part of the agreement with DEA and our continuing desire to work with DEA to combat prescription drug abuse, we have identified specific compliance measures – many of which Walgreens has already taken – to enhance our ordering processes and inventory systems, to provide our team members with the tools, training and support they need to ensure the appropriate dispensing of controlled substances and to improve collaboration across the industry,” said Crawford.

The distribution center that sparked the DEA probe is banned from distributing and dispensing controlled substances until 2014 and the settlement also resolves investigations into the distribution of painkillers from Walgreens distribution centers in Colorado, New York and Michigan. Walgreens expects the settlement will cause a negative impact on its third quarter stock price of four to six-cents per share.

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OPERATIONS

Action Services Group names Fairley VP

BY Staff Writer

Aston, Pa. – National lighting, sign and electrical maintenance and service company Action Services Group has named Joe Fairley as VP of account solutions. Fairley will be responsible for Action Services Group’s national sales development and sales management of the account solutions team. He has more than 20 years of experience in facility services.

“Joe’s experience in the markets that Action Services Group addresses, including retail, restaurant, grocery, convenience stores, healthcare, hospitality and other commercial verticals, will be a great asset to our company and to our growth. We are now exceptionally positioned for accelerated growth with an outstanding team in place,” said Ted Stouch, president of Action Services Group.

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REAL ESTATE

Krispy Kreme refranchises Dallas

BY Staff Writer

Winston-Salem, N.C. – Krispy Kreme Doughnut Corporation has entered into a letter of intent with an affiliate of Sun Holdings, LLC for the sale of three company-owned shops in Dallas, and for Sun Holdings’ further development of the Dallas market. The sale of the stores is subject to conditions, including the execution of a definitive asset purchase agreement and a development agreement pursuant to which Sun Holdings would undertake the further development of new Krispy Kreme shops in Dallas.

“Execution of the letter of intent with Sun Holdings represents another step forward in our plans to accelerate the pace of domestic franchise expansion,” said Cindy Bay, senior VP of US stores for Krispy Kreme. “We look forward to announcing the execution of definitive agreements for the Dallas market.”

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