Cardinal Health Pays Millions in Penalties

SEATTLE (AP) — Cardinal Health has agreed to pay $34 million in civil penalties for failing to report suspicious orders by pharmacies in Florida and Maryland.

Federal prosecutors say the settlement also resolves a civil investigation in Western Washington state into the Lakeland, Florida-based company's failure to maintain records concerning Class II controlled substances.

Federal prosecutors in southern New York say Cardinal Health will pay an additional $10 million to resolve allegations that its subsidiary, Kinray, Inc., failed to report suspicious orders.

In the Florida and Maryland settlement, Cardinal Health acknowledged it failed to comply with regulations requiring reports of pharmacies' suspicious orders of certain narcotic medications from 2009 to 2012.

Cardinal didn't admit to record-keeping allegations in Western Washington, but chose to resolve the case.