CVS pays Uncle Sam $20 million settling SEC charges of spiking financials

CVS Caremark the nation’s second largest pharmacy chain is paying $20 million to resolve charges that it misled investors and used improper accounting to artificially spike up its financial earnings says the Securities and Exchange Commission(SEC).

The SEC says that CVS held a $1.5 billion bond offering in 2009 but failed to tell investors that it had lost a significant Medicare Part D and contract revenues.

The SEC also said that the company’s retail controller Laird Daniels had used improper accounting practices relating to a 2008 acquisition of a drug store chain Longs Drugs to boost the company’s financial performance.

Jeff Newman represents whistleblowers