Aug 2 (Reuters) - CVS Caremark Corp said on Friday
that it plans to pay a $20 million civil penalty to resolve a
U.S. Securities and Exchange Commission investigation into 2009
comments and staff securities transactions and its accounting
for an acquisition.
The drugstore and pharmacy benefits management company said
the settlement will be entered on a "no admit or deny" basis,
resolving a number of alleged violations of the Securities Act
of 1933 and the Securities Exchange Act of 1934, including some
CVS received a subpoena from the SEC in February 2011,
followed by additional subpoenas and other requests for
information related to issues such as public disclosures the
company made in 2009, securities transactions by some company
officers and employees during that year, and the purchase
accounting for its 2008 acquisition of Longs Drug Stores Corp.
The settlement, reached in principle with staff of the SEC's
Boston regional office, is subject to the completion of final
documentation and approval by the SEC and federal court, CVS
said. The company said it has fully reserved funds for the
settlement and will not need to restate earnings for any period.