CVS Pharmacy, Inc. has filed a lawsuit against Velocity Pharma, LLC for breach of contract related to a recall of defective eye drop products. The complaint was lodged in the United States District Court for the Eastern District of New York on December 22, 2025. CVS alleges that Velocity failed to indemnify them for costs incurred from a product recall and subsequent litigation.
The case stems from a series of events beginning in October 2023 when the FDA issued a warning about potentially contaminated eye drops manufactured by Kilitch Healthcare India Limited and distributed by Velocity Pharma. These products were sold under CVS branding across their retail locations nationwide. Following this warning, CVS proactively removed the affected products from its shelves, incurring significant costs in the process.
Despite an agreement outlined in their Master Supply Agreement (MSA) dated August 19, 2019, which obligated Velocity to cover all recall-related expenses and indemnify CVS against legal claims arising from product defects, Velocity allegedly failed to uphold these commitments. This failure forced CVS to engage legal representation independently and settle a class-action lawsuit filed by customers claiming economic harm due to the defective eye drops.
CVS's complaint highlights several contractual breaches by Velocity. The MSA explicitly required Velocity to bear all recall costs and defend CVS against any third-party claims related to product defects. Additionally, an Indemnification Agreement signed on October 14, 2022, reiterated these obligations. However, despite repeated notifications and requests for defense tendering from CVS following the filing of Ruffin v. CVS Health Corp., Velocity did not respond or fulfill its contractual duties.
As a result of these alleged breaches, CVS is seeking damages exceeding $1.3 million. This amount includes $128,056 in recall-related expenses and over $1 million associated with legal fees and settlement payments from the Ruffin Litigation. Furthermore, CVS is requesting additional compensation for attorneys' fees incurred during this current action against Velocity.
Representing CVS Pharmacy in this matter is attorney Steven M. Rosato from DLA Piper LLP (US). The case has been assigned Case No.: 2:25-cv-07022 in front of the United States District Court for the Eastern District of New York.
Source: 225cv07022_CVS_Pharmacy_Inc_v_Velocity_Pharma_LLC_Complaint_Eastern_District_New_York.pdf