Dublin, Ohio-based Cardinal Health reached a nationwide settlement with the federal government, resolving the outstanding civil penalty portion of the company's 2012 administrative settlement with the U.S. Drug Enforcement Administration.
Under the 2012 settlement, Cardinal Health's registration to distribute controlled substances from its distribution center in Lakeland, Fla. was suspended for two years. The settlement also included a memorandum of agreement in which Cardinal Health admitted it inadequately performed due diligence efforts for some pharmacy customers and failed to fully comply with a previous memorandum of agreement.
The 2012 settlement did not resolve the government's civil penalty claims. Under the latest settlement, announced Dec. 23, Cardinal Health has agreed to pay $44 million to the Department of Justice to resolve the matter.
The DOJ, including the DEA and the United States Attorneys' Offices for the Middle District of Florida, the Southern District of New York, the District of Maryland, the Western District of Washington and all other districts across the U.S., have agreed not to pursue further administrative or civil action on these and related matters. Cardinal Health had previously disclosed the civil fines claims and a related accrual of $44 million in its public securities filings.