Guest guest Posted September 16, 2003 Report Share Posted September 16, 2003 > U.S. Sues to Block Importing of Drugs > From Associated Press > > NEW YORK The Justice Department filed a lawsuit Thursday to shut down two > companies operating storefronts that help senior citizens purchase cheaper > prescription medicines from Canada. > > The lawsuit, filed in U.S. District Court in Tulsa, Okla., charges that Rx > Depot Inc. and its sister company, Rx of Canada LLC, violated federal law > by causing the importation of Canadian prescription drugs. Under U.S. law, > only pharmaceutical manufacturers are allowed to bring their medicines into > the country. > Rx Depot President Carl Moore said he would fight the lawsuit, saying > senior citizens on limited budgets need his service. > > Rx Depot and Rx of Canada have a combined total of 85 stores, 22 of which > are owned by Moore and his son, Joe-Max, a veteran of the U.S. national > soccer team. > > Customers bring prescriptions to the stores, which fax them with the > customers' health information to a Canadian pharmacy. A doctor reviews > them, the prescriptions are rewritten, and the pharmacy sends the drugs by > mail to the customers, usually within two weeks, according to Fred Stoops, > Moore's lawyer. > > The companies get a percentage of the prescription price, he said. > > Prescription medicines are up to 50% cheaper in Canada because of that > government's price regulation. > > Justice Department spokesman Charles Miller said the judge assigned to the > case could immediately grant the government's request to close the stores, > but he said he didn't know whether that was probable. > > The lawsuit seeks to close all of the chains' stores and obtain financial > relief for the plaintiffs, including restitution to customers. > > " People saved half the cost of the prescriptions. What damages could they > be talking about? " Stoops said. " The logic of this case makes no sense. " > > Stoops said the companies are not breaking the law. He said that allowing > only pharmaceutical manufacturers to import their products from abroad > violates antitrust statutes. He also said people have the right to import > drugs from Canada under the North American Free Trade Agreement. > > The U.S. Food and Drug Administration warned Rx Depot in March in a letter > to its Arkansas store that it was illegally importing drugs from Canada and > to quit or risk being shut down. > > Rx Depot not only refused, it expanded into more states, FDA Associate > Commissioner William Hubbard said this week. > > Rx Depot and Rx of Canada operate storefront businesses in about 20 states. > Pharmacy regulators in four states have attempted to close the companies' > stores, but only Montana has succeeded. > http://www.latimes.com/news/nationworld/nation/la-na-drugsuit12sep12,1,52064 09.story?coll=la-headlines-nation > Quote Link to comment Share on other sites More sharing options...
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