Rite Aid 2014 Annual Report Download - page 22

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General. We have substantially completed our response to both of the subpoenas and are unable to
predict the timing or outcome of any review by the government of such information.
In April 2012, we received an administrative subpoena from the Drug Enforcement Administration
(‘‘DEA’’), Albany, New York District Office, requesting information regarding our sale of products
containing pseudoephedrine (‘‘PSE’’). In April 2012, we also received a communication from the
United States Attorneys Office (‘‘USAO’’) for the Northern District of New York concerning an
investigation of possible civil violations of the Combat Methamphetamine Epidemic Act of 2005
(‘‘CMEA’’). In April 2013, we received additional administrative subpoenas from DEA concerning
certain retail PSE transactions at New York stores and the USAO commenced discussions with us
regarding whether, from 2009 (upon implementation of an electronic PSE transaction logbook system)
through the present, we sold products containing PSE in violation of the CMEA. Violations of the
CMEA could result in the imposition of administrative, civil and/or criminal penalties against us. We
are cooperating with the government and continue to provide information responsive to the subpoenas.
We have entered into a tolling agreement with the USAO. We are unable to predict the timing or
outcome of any review by the government of such information.
We received an additional administrative subpoena from the DEA in December 2013 requesting
information in connection with an investigation of violations of the CMEA in West Virginia. We are
unable to predict the timing or outcome of any review by the government of such information.
In January 2013, the DEA, Los Angeles District Office, served an administrative subpoena on us
seeking documents related to prescriptions by a certain prescriber. The USAO, Central District of
California, also contacted us about a related investigation into allegations that Rite Aid pharmacies
filled certain controlled substance prescriptions for a number of practitioners after their DEA
registrations had expired or otherwise become invalid in violation of the federal Controlled Substances
Act and DEA regulations. We responded to the administrative subpoena and subsequent informal
requests for information from the USAO. We met with the USAO and DEA in January 2014 and are
involved in ongoing discussions on the matter.
We were served with a Civil Investigative Demand dated June 21, 2013 by the USAO for the
Eastern District of California. The CID requests records and responses to interrogatories regarding
Rite Aid’s Drug Utilization Review and prescription dispensing protocol and the dispensing of drugs
designated ‘‘Code 1’’ by the State of California. We are in the process of producing responsive
documents and interrogatory responses and are unable to predict the timing or outcome of any review
by the government of such information.
In addition to the above described matters, we are subject from time to time to various claims and
lawsuits and governmental investigations arising in the ordinary course of business. While our
management cannot predict the outcome of any of the claims, our management does not believe that
the outcome of any of these legal matters will be material to our consolidated financial position. It is
possible, however, that our results of operations or cash flows in a particular fiscal period could be
materially affected by an unfavorable resolution of pending litigation or contingencies.
Item 4. Mine Safety Disclosures
Not applicable
21