November 10, 2009 / 5:55 PM / 9 years ago

UPDATE 2-CVS settles N.Y. charges it sold expired products

* CVS said to sell outdated drugs, eggs, formula, milk

* Some products more than two years outdated — Cuomo

* CVS says committed to preventing a recurrence

* CVS shares fall (Adds CVS comment, updated share prices)

NEW YORK, Nov 10 (Reuters) - New York’s attorney general said Tuesday that CVS Caremark Corp (CVS.N) will pay $875,000 to settle charges that it sold expired products — some of which were more than two years past their expiration date — at retail pharmacies across the state.

Attorney General Andrew Cuomo said the settlement follows a similar $1.3 million accord in December with another pharmacy chain, Rite Aid Corp (RAD.N).

Cuomo said his office’s investigation revealed that 142 CVS stores, or 60 percent of those visited, sold products such as over-the-counter drugs, baby formula, eggs and milk that were past their expiration dates.

He said the settlement resolves his lawsuit accusing CVS of the improper sales and of violating a previous settlement under which it agreed to take steps to end such sales.

“Companies have a responsibility to put the safety of their customers ahead of boosting their profits,” Cuomo said in a statement.

CVS agreed to implement procedures to prevent the sale of expired products, and post in-store notices reminding customers to check products’ expiration dates.

Company spokesman Mike DeAngelis said CVS is “fully committed to maintaining inventory management practices to prevent expired products from being sold to customers.”

He also said that CVS is unaware of any consumers harmed by expired products that it may have sold, and that the settlement was not an admission of wrongdoing.

CVS is based in Woonsocket, Rhode Island.

Shares of the company traded down 95 cents, or 3.1 percent, at $29.95 in afternoon dealings on the New York Stock Exchange. (Reporting by Jonathan Stempel; editing by Andre Grenon and Gerald E. McCormick)

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