King Soopers has agreed to a record $7 million settlement with the U.S. attorney’s office in Denver after an investigation into security and record-keeping procedures in its pharmacies.
Parent company Kroger, which operates King Soopers and City Market stores in Colorado, will also spend more than $6 million to implement stricter controls in all 1,900 of its pharmacies nationwide.
The settlement stems from an April 2004 investigation into seven King Soopers stores that revealed lapses that allowed controlled substances to go unaccounted for. The Drug Enforcement Administration and U.S. attorney’s office began investigating the company for violations of the Controlled Substances Act after a person was caught with illegal prescription drugs that were traced to a King Soopers pharmacy, said U.S. Attorney Bill Leone.
As part of its compliance effort, Kroger pharmacies have revamped their record-keeping procedures, increased the number of audits and made access to controlled drugs more restrictive, said King Soopers president Russ Dispense.
Additionally, the company disciplined 12 employees who “either violated policies or failed to follow guidelines” at the seven stores that were investigated, Dispense said. Penalties ranged from written warnings to termination.
“As a company, we learned a difficult and valuable lesson,” Dispense said. “I’m confident we’re doing whatever is necessary to meet all of our compliance responsibilities with the government.”
Kroger’s settlement far eclipses a January 2004 settlement with NeighborCare Pharmacy in Golden for similar violations. The company paid $625,000 as part of its settlement.
Leone said that the problems revealed at the King Soopers pharmacies probably are more widespread and that his office would continue to pursue violators.
Staff writer Kristi Arellano can be reached at 303-820-1902 or karellano@denverpost.com.
