Drugstore chain CVS Health has agreed to pay $535,000 to resolve federal allegations that it filled dozens of Percocet prescriptions its pharmacists should have known were forged.
The U.S. attorney for Rhode Island and the head of the Drug Enforcement Administration’s New England office announced the penalty Tuesday.
Percocet is a brand-name painkiller that contains acetaminophen and the opioid oxycodone. Federal officials say the forged prescriptions were filled at several Rhode Island locations between September 2015 and June 2017, in violation of the federal Controlled Substances Act. The statute places a “corresponding responsibility” on pharmacists to ensure the prescriptions they’re filling are valid and legal.
Woonsocket-based CVS denies wrongdoing in the case but says it “agreed to this settlement to avoid the delay, uncertainty and expense of litigation.”
First Tennessee Bank ups quarterly profits
The parent company of First Tennessee Bank boosted its first quarter earnings in line with analysts expectations.
First Horizon National Corp., the Memphis-based holding company that owns First Tennessee Bank, said Tuesday it earned $103.4 million, or 35 cents per adjusted share. That was up 3 percent from the fourth quarter when the bank fell slightly short of analysts expectations.
“During the first quarter, we delivered on our priorities to drive profitable growth in our key markets and specialty areas, improve efficiency, effectively return capital to shareholders, and identify opportunities to provide more value to our customers,” said Bryan Jordan, First Horizon’s chairman and CEO.
Bank deposits in Tennessee were up 3 percent from the fourth quarter of 2018, while bank revenues are up 13 percent over a year ago.
First Tennessee operates the biggest bank in metropolitan Chattanooga and in Tennessee as a whole.
The company’s stock rose Tuesday by more than 2.9 percent, or 42 cents per share, to $14.74 in trading on the New York Stock Exchange.
Netflix signs up 9.6 million more
Netflix signed up more new paying subscribers than expected during the first quarter, attracting 9.6 million new accounts during the period – the highest add in the company’s history.
But investors shrugged off the good news, sending the stock lower in after-hours trading Tuesday as the streaming giant offered weak guidance for the coming quarter.
The Los Gatos, Calif.-based company reported robust earnings of 76 cents per share, easily beating guidance of 56 cents per share, with revenue coming in at $4.52 billion, outpacing guidance of $4.49 billion. The results marked significant growth from the year-ago quarter, which saw earnings of 64 cents per share on revenue of $3.70 billion.
Tuesday’s results beat Wall Street expectations. Analysts polled by FactSet had estimated earnings of 58 cents per share on revenue of $4.50 billion for the period.
United Airlines profit doubles in 1st quarter
United Airlines said Tuesday that its first-quarter profit doubled to $292 million as it carried more passengers and limited costs other than fuel.
The results beat Wall Street expectations for a quarter that began with the partial government shutdown, which dinged travel by federal employees, and ended with Boeing 737 Max jets grounded around the world.
The airline gave an upbeat forecast of second-quarter revenue trends. However, Chicago-based United did not raise its full-year earnings prediction.
Executives of parent United Continental Holdings Inc. are scheduled to talk about the results with analysts and reporters on Wednesday. In a message to employees, CEO Oscar Munoz said the latest results vindicated a strategy of adding more flights, investing in customer service and managing costs.
The second quarter is likely to benefit slightly by having Easter travel fall entirely in April, unlike last year. At United, that could be offset, however, by the additional costs of managing around the grounding of its 14 Max planes.
CSX earnings beat forecasts
CSX Corp. (CSX) on Tuesday reported first-quarter net income of $834 million.
On a per-share basis, the Jacksonville, Florida-based company said it had profit of $1.02.
The results topped Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 91 cents per share.
The freight railroad posted revenue of $3.01 billion in the period, which met Street forecasts.
CSX shares have climbed 22 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 16 percent. In the final minutes of trading on Tuesday, shares hit $75.80, a rise of 34 percent in the last 12 months.