Rite Aid Is Selling Expired Drugs, Pa. Class-Action Suit Says

Pharmacy retailer Rite Aid sells grossly outdated over-the-counter drugs, baby formula and other products, according to a class-action lawsuit filed in Philadelphia federal court.

Plaintiff Terri A. Brennan filed suit on behalf of herself and similarly situated Rite Aid customers who may have unwittingly bought expired medications from the drug chain.

Brennan says the stale drugs endangered consumers because of their potential ineffectiveness, diminished efficacy or general lack of safety.

The suit references a recent ABC News report that said investigators from the office of New York Attorney General Andrew Cuomo found over-the-counter drugs being sold more than two years after their expiration dates during reviews of more than 1,000 Rite Aid stores in New York.

Cuomo announced June 12 that the state would take legal action against all major drug chains found to be selling expired products.

The statement referenced his office's recent probe of 142 CVS and 112 Rite Aid pharmacies in the state.in which undercover investigators purchased more than 600 expired products, including milk, eggs, medicines and baby formula.

Many of the expired products were more than one year old, Cuomo said.

In a June 23 statement Rite Aid announced the settlement of similar charges filed by the New Jersey Division of Consumer Affairs in 2006. The company agreed to pay a $475,000 penalty to settle charges that it sold outdated and incorrectly priced non-prescription drugs, baby formula and baby food at Rite Aid and Eckerd stores in New Jersey.

As part of the settlement Rite Aid also agreed to perform periodic inspections and to remove outdated merchandise from store shelves. The company will pay an additional $175,000 if violations are discovered over the next year, according to the settlement.

Brennan's suit alleges breach of implied contract and breach of the implied warranty of merchantability. She is seeking at least $5 million in damages.

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Brennan is represented by Sherrie R. Savett, Michael Fantini, Doug Risen and Shoshana Savett of Berger & Montague in Philadelphia and Jason Brodsky and Evan Smith of Brodsky & Smith in Bala Cynwyd, Pa.