(Washington, DC) Attorney General Robert J. Spagnoletti announced today that the District Government has settled the antitrust case it brought against CVS Corporation concerning the company's purchase and closing in 2002 of a competing pharmacy in the District's Palisades neighborhood.
CVS has agreed to pay $350,000 to a charity designated by the Attorney General to be used to benefit District residents in need of assistance to purchase prescription drugs. CVS will pay an additional $125,000 into the District's antitrust enforcement fund.
In addition, CVS has agreed, for a three-year period, to price constraints on its Palisades store and to continued delivery service from that store. In agreeing to the settlement, CVS has not admitted to any liability.
The District's complaint charged CVS with restraint of trade and monopolization in violation of the District of Columbia Antitrust Act. The District charged that CVS acquired market power in the Palisades neighborhood that would allow it to reduce services or to raise prices.
"We are pleased that we were able to resolve this antitrust suit in a way that helps low income District residents who can least afford the high cost of prescription drugs," said Attorney General Spagnoletti. "This settlement is consistent with our antitrust enforcement mission, which is to protect consumers from actions that threaten to deprive them of the benefits of competition."
Select the documents below for more information: