Case Details

Year Initiated/Committed


Year Resolved


Settlement Amount



U.S. District Court for the Southern District of New York

Docket Number

90 Civ. 4330

Lead State


Participating States



Brooks Drug, Inc.; Carl’s Drug Company; the Pharmaceutical Society of the State of New York; Rite Aid Corporation; Fay’s Incorporated; Kinney Drugs; Mellville Corporation

Case Description

The defendant pharmacies agreed to boycott New York State’s prescription program for state employees. The 1992 settlement agreements with Carl’s Drug Company, the Pharmaceutical Society of the State of New York, Rite Aid Corporation, Fay’s Incorporated, Kinney Drugs, and Mellville Corporation prohibit the pharmacy firms from agreeing with other pharmacies to boycott or threaten to boycott participation agreements. For a certain period of years the agreement prohibited Mellville from disclosing, to any other pharmacy, their intention or decision with respect to any participation agreement.
Carl’s Drug Company and Fay’s Incorporated also entered into settlement agreements providing for the payment of compensatory damages in the amount of $384,000 and $1,064,000 respectively. The Pharmaceutical Society of the State of New York entered into an additional settlement agreement containing required community service. PSSNY was to conduct thirty-seven brown bag educational programs where seniors could consult with pharmacists about drug interaction.
New York State’s action followed a successful action by FTC against the same boycott. See In the Matter of Peterson Drug Co., 115 FTC 492, 1992 WL 12011049 (1992).