The Department of Justice on Friday announced a record $7 million settlement by King Sooper, City Market, and parent company Kroeger for violations of the Controlled Substances Act.
The problems stem from from pharmacy practices, ranging from poor record keeping to controlled substance security. Audits by the Drug Enforcement Agency determined that it was impossible to determine how many drugs had been lost or diverted, and who was responsible for potential drug losses.
In addition to the $7 million settlement, Kroeger agreed to implement a pharmacy compliance and training program estimated to cost more than $6 million in all 1,900 of its pharmacies nationwide.
The DEA audited seven King Soopers pharmacies after receiving tips, and found a pattern of non- compliance with the requirements of CSA and federal regulations. The problems were systemic, spanning from the time the drugs were ordered to when they were dispensed.
Kroeger fully cooperated with the audits, according to the U.S. Department of Justice.
“Kroger should be commended for recognizing that they have a problem, and taking steps to immediately address their controlled substance security deficiencies on a national level, said U.S. Attorney Bill Leone, in a statement.
“As part of this settlement, Kroger offered to institute their compliance program, not just in Colorado, but throughout the country. This important step goes a long way towards removing controlled substances illegally obtained from pharmacies from our streets.”
He added that diversions of drugs are not limited to Kroeger or King Soopers and that the Justice Department will continue to investigate pharmacies.
Jeffrey Sweetin of the DEA said that diverted pharmaceuticals account for a large percentage of illegal drug abuse.
An additional $3 million penalty imposed by the settlement was suspended as long as Kroeger complies with the agreement.
