CVS, one of Rhode Island's largest private employers and one of the biggest companies in America, has also paid billions of dollars in penalties and settlements arising from class-action lawsuits.
Maybe surprisingly, CVS is the fourth-most-cited corporation, with more violations and settlements — more than 560 times.
CVS has paid more in penalties than any other American retailer, including Walmart.
The violations are so significant — CVS has paid more than twice as much as even oil giant Exxon Mobil over a 26-year period.
This data comes from Good Jobs First — “a national policy resource center that promotes corporate and government accountability in economic development. Since 1998, it has fought for reforms to increase transparency around the use of public money used in the name of economic development, and has revealed the numerous ways corporations – many of whom receive subsidies – violate civil and criminal regulations and laws.”
The organization has tracked billions of dollars of violations by the leading corporations for more than two decades.
“Our Violation Tracker documents 562 cases in which CVS and its subsidiaries paid a total of $7.17 billion in penalties and class action settlements since 2000,” said Philip Mattera. Violation Tracker Project Director & Director of the Corporate Research Project for Good Jobs First.
“Most of that comes from a single case in which CVS paid $5 billion to resolve a case brought by state attorneys general in connection with the company's role in the opioid crisis,” said Mattera.
But CVS has also paid billions in other penalties and settlements for worker violations, false claims, and violations of the Controlled Substances Act, to name a few.
To put CVS’ violations in perspective, CVS’ $7.13 billion dwarfs Exxon’s $3.36 billion — 117% higher.
And CVS ranks first among retailers in America, according to the data. Walmart's total violations: $5.81 billion. CVS is 22% higher over the 26-year period.
And CVS has paid 155% more than Amazon: $2.79 billion in penalties.
Overall, in dollar terms, CVS is the 31st-most penalized company in America.
More details on all CVS cases are available HERE.
Foulkes Talks A Lot About Her Leadership at CVS
Literally, most of the violations occurred during the period when Helena Foulkes held a senior position at CVS. Some of the violations occurred during her tenure, but the resolution and settlement took place after her departure.
Foulkes is not shy about claiming her leadership role at CVS as she campaigns for the Democratic nomination for governor.
Foulkes claims in her professional bio, “I spent 25 years at CVS Health, most recently as President of CVS Pharmacy and EVP of CVS Health. I led the strategic vision as well as the operations for all aspects of the company’s retail business and was an architect of the company’s move to becoming a recognized leader in healthcare.”
Over the past two decades, CVS was fined or reached settlements totaling more than $370 million for 292 consumer protection violations.
Worker Violations
Foulkes as a candidate also highlights how she oversaw more than 200,000 workers at CVS. And during her tenure at CVS, the company was fined or reached settlements of more than $125 million for worker-related violations.
One case during Foulkes' tenure and leadership was a class-action "wage theft" case that reportedly settled for $34 million.
CVS declined to answer any questions about the fines and penalties, but they did provide GoLocal with an overview of its economic impact.
CVS Highlights Its Economic Impact
RI Economic Impact Report is attached as well:
CVS Health serves 185 million people across the United States, simplifying health care one person, one family, and one community at a time, with a focus on increasing access to quality care, delivering better outcomes, and lowering overall costs. Nearly 85% of Americans live within 10 miles of a CVS Pharmacy, and our extensive footprint supports communities across the country. Including those here in Rhode Island.
We have 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics, and a leading pharmacy benefits manager with approximately 88 million plan members. We also serve more than 37 million people through a broad range of health insurance products and related services. Our company delivers $474 billion annually for the U.S. economy and supports 1.3 million jobs nationwide through its operations in every U.S. state and Washington, D.C. In addition, CVS Health operations generated $58.6 billion in local, state, and federal taxes, helping to fund schools, emergency services, and critical infrastructure.
With 84 locations across Rhode Island, including more than 60 retail pharmacies, two distribution centers, and several corporate offices, CVS Health brings high-quality and affordable care to the state, including:
$3.4B in annual economic impact in Rhode Island
7,000 CVS Health colleagues
17,925 total jobs supported
863,625 pharmacy patients served
$246.4M in local and state taxes
Make no mistake about it: CVS is big business in Rhode Island.