Memphis packaging subsidiary incurs $1 million payments for Controlled Substances Act violations

Justice Department Reporters Records
Posted at 4:27 PM, Mar 14, 2022
and last updated 2022-03-14 17:55:17-04

MEMPHIS, Tenn. (WTVF) — The Department of Justice announced Monday that national pharmaceutical supplier McKesson Corporation has agreed to pay a $1 million dollar civil penalty for record-keeping deficiencies related to tens of thousands of Schedule II-V drugs.

McKesson's packaging subsidiary in Memphis, RxPak, was the site of the allegations.

“Enforcing recordkeeping requirements under the CSA is crucial, particularly during the current opioid epidemic, to ensure that often-misused controlled substances are transferred only through legitimate transactions, and not diverted to illegal channels,” said U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee.

An investigation by the Drug Enforcement Administration (DEA) Memphis Field Division identified more than 700 separate failures to take and maintain inventory records and alleged overages for eight controlled substances.

Of the records it did maintain, RxPak's account of Schedule II controlled substances did not match reports it made to the DEA.

Strict and consistent record keeping is a necessary tenant of the Controlled Substances Act.