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March 26, 2008

CVS Caremark will pay Texas $315,000 to settle suit

HOUSTON -- CVS Caremark will pay the state of Texas $315,000 to settle a lawsuit that accused the drugstore operator of dumping records from more than 1,000 customers into a garbage container.

The Rhode Island-based company will also overhaul its information security system.

Texas Attorney General Greg Abbott, who sued CVS in April, announced the agreement today.

The suit accused CVS Caremark, which operates the nation's largest retail pharmacy chain, of dumping credit card numbers, medical information and other material from customers at a store in Liberty, about 45 miles northeast of Houston.

Abbott says the $315,000 from CVS will be used by Texas to investigate and prosecute other identity theft cases.

CVS said in a statement that it's pleased with the settlement and that it takes seriously the privacy of patient health information.

-- The Associated Press

Posted by Mike McKinney  at 6:58 PM | Permalink

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