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CVS, Rite Aid hit with $14 million verdict in Kentucky lawsuit

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HAZARD, Ky. (LEX 18) — A Perry County doctor who was stripped of his medical license was awarded $14 million in damages last week in a lawsuit he filed against CVS and Rite Aid.

James Dustin Chaney was indicted in 2014 in federal court on multiple counts related to conspiracy to distribute controlled substances. He pleaded guilty in 2015 to a single count of money laundering conspiracy and was sentenced to two and a half years in prison, according to court records.

After hearing evidence at a civil trial last week, a Perry County jury found that CVS and Rite Aid “failed to exercise ordinary care in attributing controlled substance prescriptions to plaintiff Dr. James Dustin Chaney,” according to the jury verdict.

Chaney’s attorneys allege that CVS and Rite Aid pharmacies in Hazard wrongfully filled hundreds of prescriptions under Chaney’s name and license number.

“Oxycodone, hydrocodone, Xanax prescriptions that Dr. Chaney did not write and the pharmacies were filling them for patients he did not see, did not have a relationship with,” said Laraclay Parker, Chaney’s attorney.

Parker argues that the alleged inappropriately-filled prescriptions by CVS and Rite Aid led to Chaney’s indictment. She said that Chaney only pleaded guilty to a lesser charge in that case to avoid the risk of facing up to 60 years in prison.

After last week’s verdict in Chaney’s favor, his attorneys said that he wants to clear his name and reputation.

Chaney’s attorneys said that the pharmacies would fill controlled substance prescriptions more than once by adding a zero to the prescription number.

“If a customer came in for a prescription for oxycodone, 30 tablets, what Rite Aid would do was fill that under one prescription number – 87409 – then fill it a second time with number 087409, releasing 60 pills into the community,” Parker said.

CVS told LEX 18 that they “respectfully disagree” with the verdict in the case and are reviewing their options, including an appeal.

Rite Aid had no comment on the case.

The Perry County jury did side with the pharmacies on two counts, in one finding that Chaney failed to exercise “ordinary care and that such failure on his own part was a substantial factor in causing the injury about which he complains.”

In the other, the jury found it was Chaney’s duty to monitor “the reporting of controlled substance prescriptions attributed to him.”

On all other counts, the jury sided with Chaney against the pharmacies. Chaney’s lawyers said they hope the outcome will lead to the government taking a closer look at how all pharmacies do business.

“Whether it's a corporation or an individual person who wrongfully releases drugs into the community, whoever it is, they should be held responsible,” Parker said.