Oklahoma Judge Shuts Down Rx Depot. In an opinion issued yesterday, U.S. District Judge Claire Eagan in Tulsa ordered drugstore chain Rx Depot to close its outlets because their operation was illegal. Rx Depot offered customers the ability to place orders with Canadian drug manufacturers and to have the drugs shipped to their home at a far lower cost than the U.S. drugs approved by the FDA. Although Rx Depot shops do not stock the illegal Canadian drug products, the judge claimed that the company went too far: "This court is not unsympathetic to the predicament faced by individuals who cannot afford their prescription drugs at U.S. prices. However, the defendants are able to offer lower prices only because they facilitate illegal activity determined by Congress to harm the public interest." A copy of the order and the findings of fact/conclusion of law are available here: Rx Depot Order.pdf and Rx Depot Findings.pdf. Rx Depot has approximately 75 retail outlets across the United States operated by the company and by franchisees. Rx Depot plans to appeal the court's order.
Posted by franchiselawblog at November 7, 2003 12:43 PM