CVS Caremark Corp said on Friday that it plans to pay a $20 million civil penalty to resolve a U.S. Securities and Exchange Commission investigation into 2009 comments and staff securities transactions and its accounting for an acquisition.
The drugstore and pharmacy benefits management company said the settlement will be entered on a "no admit or deny" basis, resolving a number of alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934, including some anti-fraud provisions.
CVS received a subpoena from the SEC in February 2011, followed by additional subpoenas and other requests for information related to issues such as public disclosures the company made in 2009, securities transactions by some company officers and employees during that year, and the purchase accounting for its 2008 acquisition of Longs Drug Stores Corp.
The settlement, reached in principle with staff of the SEC's Boston regional office, is subject to the completion of final documentation and approval by the SEC and federal court, CVS said. The company said it has fully reserved funds for the settlement and will not need to restate earnings for any period.
(Reporting by Jessica Wohl in Chicago; Editing by Gerald E. McCormick)