CVS (CVS) Reports FTC Ends Investigation into Business Practices

CVS Caremark Corporation (NYSE: CVS) announced today that the Federal Trade Commission (FTC) has concluded its investigation under the Federal Trade Commission Act into the company's business practices. The investigation has resulted in CVS Caremark entering into a consent order that relates to certain business practices of a subsidiary of Longs Drug Stores Corporation, which took place prior to the acquisition of Longs by CVS Caremark in October 2008. There were no allegations of antitrust law violations or anti-competitive behavior related to CVS Caremark's business practices or its products or service offerings. In addition, the Company has received a formal letter from the FTC closing all other aspects of the investigation.

Pursuant to the consent order, CVS Caremark will deposit $5 million into a fund that will be used to compensate consumers who purchased coverage for the 2008 plan year from a Medicare Part D Prescription Drug Plan sponsored by Rx America, a subsidiary of Longs. The fund is being established as a result of Rx America inadvertently posting on a website maintained by the Centers for Medicare and Medicaid Services (CMS) inaccurate pricing information for certain generic drugs. In addition, CVS Caremark agreed on a go forward basis to refrain from making any misrepresentations regarding drug pricing information relating to affiliate sponsored Medicare Part D plans. The consent order will be published in the Federal Register and is subject to comment for 30 days.

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