Rite Aid Settles Expired Formula Suit in N.J., Faces Legal Action in N.Y.

NEWARK, N.J. — Rite Aid Corp., Rite Aid of New Jersey and Eckerd Corp. have agreed to a $650,000 settlement to resolve a lawsuit alleging the chain sold expired and incorrectly priced infant formula, baby food, non-prescription drugs and other products in its New Jersey locations in 2006. The drug chain has agreed to pay $475,000 in civil penalties, attorneys’ fees and investigative costs, and if it fails to adhere to the terms of the settlement over the next 12 months, faces an additional $175,000 penalty. Under the settlement’s terms, Rite Aid has agreed not to sell expired infant formula, baby food, non-prescription drugs and cosmetics and to check the expiration dates before displaying such merchandise for sale. Rite Aid has also agreed to arrange for the destruction or return to the manufacturer of any expired merchandise removed from store shelves. The retailer is also required to implement uniform policies for the periodic inspection and removal of merchandise to ensure that it is not sold beyond its expiration date as well as for monitoring the price accuracy of merchandise, according to the N.J. Office of the Attorney General. The news comes just weeks after an investigation by the office of N.Y. State Attorney General Andrew Cuomo revealed that three CVS stores and 13 Rite Aid locations were selling expired items including baby formula. After the chains were alerted about the investigations’ results, some locations continued to merchandise expired products, Cuomo said. “Syracuse-area CVS and Rite Aid stores continue to show a disregard for the safety of their customers, selling expired over-the-counter children’s drugs and other items that could potentially be harmful,” said Cuomo in a statement last week. “These companies have a responsibility to put customer safety ahead of profits, and unless they aggressively and immediately purge their shelves of all expired goods, I’m prepared to force them to do so.”

Read More of Today's Headlines