Products Liability Law Reporter

Covetrus North America, which distributes veterinary medicine to customers worldwide, is a registrant with the Drug Enforcement Administration (DEA) and is required to conduct its operations in accordance with the Controlled Substances Act, 21 U.S.C. §801 et seq. The act requires manufacturers and distributors of opioids to maintain effective controls against diversion of controlled substances and to review quarterly information provided by the Attorney General in the Automation of Reports and Consolidated Orders System (ARCOS).

From March 2016 to June 2016, Covetrus’s internal suspicious order monitoring system allegedly flagged as suspicious 35 separate orders of hydrocodone-homatropine 5 mg tablets from a veterinary office in West Barnstable, Mass. Covetrus allegedly released each of the orders and sent them to the veterinary office but did not document the follow-up inquiries related to the orders. An office manager from the veterinary office admitted that she had diverted drugs from the orders for her own personal use.

In March 2018, an order of hydrocodone-homatropine fulfilled by Covetrus was lost in transit to the veterinary office. Covetrus allegedly failed to notify the DEA. Additionally, from January 2015 to July 2023, Covetrus allegedly failed to properly review the most recent information made available through ARCOS.

The United States, through the U.S. Attorney’s Office, District of Massachusetts, alleged Covetrus North America, LLC, was liable for civil monetary penalties under the Controlled Substances Act.

The parties settled for more than $1.12 million, plus interest. Additionally, the settlement required Covetrus and the DEA to enter into a one-year Memorandum of Agreement, in which Covetrus will continue improving its suspicious order monitoring system.

Citation: United States v. Covetrus N.A., LLC, U.S. Atty.’s Office D. Mass. Oct. 25, 2024.

Plaintiff counsel: Julien Mundele, Boston.