CVS files complaint against Prasco for breach of contract

September 17, 2007

CVS files complaint against Prasco for breach of contract

CVS has filed a complaint in the U.S. District Court for the District of Rhode Island alleging breach of contract arising from the actions of Prasco LLC. CVS claims the generic manufacturer has an agreement to sell directly or indirectly to the chain fexofenadine hydrochloride tablets at the lowest price offered to any other customer. The product is a generic form of a brand pharmaceutical sold under the name Allegra. According to the complaint, Prasco charged another customer a substantially lower price on the product, causing CVS over $15.6 million in damages. CVS said it has recouped $3,002,327, but Prasco continues to owe the chain over $12.6 million. Michael DeAngelis, a CVS spokesman, said, "We cannot comment as this matter is currently in litigation." Prasco was contacted, but a comment was not available at press time.

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