CVS Pharmacy v. The City of Philadelphia

2026 Pa. Super. 36
CourtSuperior Court of Pennsylvania
DecidedFebruary 27, 2026
Docket3093 EDA 2024
StatusPublished
AuthorOlson

This text of 2026 Pa. Super. 36 (CVS Pharmacy v. The City of Philadelphia) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CVS Pharmacy v. The City of Philadelphia, 2026 Pa. Super. 36 (Pa. Ct. App. 2026).

Opinion

J-A18005-25 2026 PA Super 36

CVS PHARMACY, INC., CVS RX : IN THE SUPERIOR COURT OF SERVICES, INC., CVS INDIANA, : PENNSYLVANIA L.L.C., PENNSYLVANIA CVS : PHARMACY L.L.C, ALBERTSON'S LLC, : AND ACME MARKETS, INC. : : Appellants : : : No. 3093 EDA 2024 v. : : : THE CITY OF PHILADELPHIA, : PENNSYLVANIA :

Appeal from the Order Entered July 24, 2024 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): 210902183

BEFORE: OLSON, J., BECK, J., and FORD ELLIOTT, P.J.E. *

OPINION BY OLSON, J.: FILED FEBRUARY 27, 2026

Appellants, CVS and Albertsons (hereinafter “the Appellant

Pharmacies”),1 appeal by permission from the interlocutory order entered on

July 24, 2024, which overruled their preliminary objections. We affirm.

____________________________________________

* Retired Senior Judge assigned to the Superior Court.

1 The appellate entities which are identified as “CVS” are CVS Pharmacy, Inc.,

CVS Rx Services, Inc., CVS Indiana, L.L.C., and Pennsylvania CVS Pharmacy L.L.C.; the appellate entities which are identified as “Albertson’s” are Albertson’s LLC and ACME Markets, Inc. J-A18005-25

In 2021, the City of Philadelphia (“the City”) filed a complaint against

the Appellant Pharmacies.2 According to the complaint, the Appellant

Pharmacies are engaged in the business of “distribut[ing] and dispens[ing]

prescription opioids throughout the United States, including in the City.” The

City’s Complaint, 9/28/21, at ¶¶ 35-60. Most prescription opioids are

identified as “Schedule II” controlled substances and are heavily regulated

under Pennsylvania law.3 Id. at ¶ 11; see also 35 P.S. § 780-104(2). By

definition, a Schedule II controlled substance is one that has “a high potential

for abuse, currently accepted medical use in the United States, or currently

accepted medical use with severe restrictions, and abuse may lead to severe

psychic or physical dependence.” 35 P.S. § 780-104(2).

Under Pennsylvania law, the Appellant Pharmacies “are subject to

various duties to report the quantity of Schedule II controlled substances in

order to monitor such substances and prevent oversupply and diversion into

the illicit market.” The City’s Complaint, 9/28/21, at ¶ 72. The Appellant

Pharmacies also have “several responsibilities under Pennsylvania law . . . to ____________________________________________

2 The City filed its complaint against a number of other defendants. The other defendants either settled or declared bankruptcy, leaving the Appellant Pharmacies as the only remaining defendants in this case.

3 These prescription opioids include hydrocodone and oxycodone. See 35 P.S. § 780-104(2)(i)(1). Illicit opioids, such as heroin, cannot be prescribed, as these types of opioids are defined as “Schedule I” controlled substances. See 35 P.S. § 780-104(1)(ii)(10); see also 35 P.S. § 780-104(1) (defining a “Schedule I” controlled substance as one that has: “a high potential for abuse, no currently accepted medical use in the United States, and a lack of accepted safety for use under medical supervision”).

-2- J-A18005-25

control [] the supply chain of opioids.” Id. at 76. These responsibilities

include: “set[ting] up a system to prevent diversion [of opioids], including

[flagging] excessive volume and other suspicious orders;” reporting suspicious

orders to the relevant enforcement authorities; stopping shipments of any

order which is flagged as suspicious; not filling or shipping “any suspicious

prescription or order unless they have conducted an adequate investigation

and determined that the prescription or order is not likely to be diverted into

illegal channels;” exercising “reasonable care in delivering” the opioids;

“speak[ing] accurately and truthfully . . . about opioids and their efforts to

combat diversion;” and, “provid[ing] effective controls and procedures to

guard against theft and diversion of the [opioids].” Id. at ¶¶ 76-118. The

complaint alleged that the Appellant Pharmacies knowingly violated these

duties and “allowed widespread diversion [of opioids] to occur,” so that the

Appellant Pharmacies could “focus on filling all prescriptions as quickly as

possible” and “bolster their revenue, increase profit, and grow their share of

the prescription painkiller market.” Id. at ¶¶ 72, 75, and 155.

In doing so, the City alleged, the Appellant Pharmacies created “an

opioid-fueled public health and safety emergency of unprecedented

dimensions that has endangered, and continues to endanger, the health,

safety and peace of Philadelphia and its residents.” Id. at ¶ 547. This public

health and safety emergency:

includes historically high incidences of opioid addiction and opioid use disorder and of opioid-related deaths and non-fatal opioid overdoses. It also includes other adverse health

-3- J-A18005-25

effects of opioid addiction and opioid use disorder including historically high incidences of babies born with opioid withdrawal conditions, and an unprecedented increase in new hepatitis C virus (“HCV”) infections caused by opioid injections. The epidemic has also been accompanied by an unprecedented level of opioid-related emergency room visits and hospitalizations; extensive provision of emergency response services by the Fire Department and other City agencies in reviving and transporting overdose victims; and the expenditure of enormous resources by the Police Department, District Attorney’s Office, Public Defender’s Office, Health Department, Department of Behavioral Health and Intellectual Disability Services, Department of Human Services, and other City departments and agencies providing health and related services to address increased crime and violence and family and social dysfunction linked to opioid use and addiction. The Medical Examiner’s office is struggling to keep up with the rising tide of opioid deaths. In 2017, the homicide rate in Philadelphia reached its highest level since 2012, due in part to the opioid epidemic and competition from rival drug dealers who sell opioids. The number of homicides has continued to rise.

Id. at ¶ 548. Further, the complaint alleged that the opioid epidemic has

caused “piles of trash, needles, and other waste” to “litter[] City streets” and

created the “largest open-air drug market on the East Coast” in the Kensington

area of Philadelphia. Id. at ¶¶ 583-584. According to the complaint, this drug

market consisted of “a sprawling encampment of drug users who injected

themselves with opioids and heroin in broad daylight” and littered the area

with “[p]iles of trash and hundreds of thousands of used needles.” Id. at

¶ 583. This encampment was eventually shut down in 2017, due “in no small

part . . . [to the] law enforcement efforts by the City.” Id.

As is relevant to the current appeal, the City claimed that the Appellant

Pharmacies created a public nuisance by “distribut[ing], dispens[ing], and

-4- J-A18005-25

[selling] far greater quantities of prescription opioids than they knew could be

necessary for legitimate medical uses, while failing to report, and to take steps

to halt, suspicious orders when they were identified.” The City’s Complaint,

9/28/21, at ¶ 2. According to the complaint, this caused the City to

“experience[] both a flood of prescription opioids available for illicit use or sale

and a population of patients physically and psychologically dependent on

them.” Id. The City alleged that it sustained the following economic harm as

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Bluebook (online)
2026 Pa. Super. 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cvs-pharmacy-v-the-city-of-philadelphia-pasuperct-2026.