Internal Sexual Harassment Investigation Prompts CVS to Fire Several Executives

Pharmacy drug chain CVS hit headlines on Friday as the company fired several employees, including executives.

First reported by WSJ, the move came after there was an internal investigation on how the company handled sexual harassment complaints. There was no number disclosed on how many employees had been fired.

The company also said it will shake up how it handles similar complaints in the future, according to a CVS statement. CEO Karen Lynch will oversee the effort.
In a statement, CVS said it received an anonymous report in late 2021 that alleged misconduct by an employee in field management. It said it hired an outside firm to conduct an independent review.

After the probe had finished and substantiated those complaints, CVS said it “terminated the individual and others have since been exited from the company for failing to treat allegations with the seriousness we expect.”

“We absolutely do not tolerate behavior or actions that are harassing, hostile, abusive or discriminatory,” the company said.

On Friday, a CVS spokesperson confirmed that Lynch learned about complaints made by at least two female employees who alleged that a New Jersey-based regional store manager touched them inappropriately or harassed them at work. That manager had overseen hundreds of the company’s stores.

In a memo obtained by CNBC, Lynch said Chief Pharmacy Officer Prem Shah and Chief Customer Officer Michelle Peluso have met with employees across the company to talk about the situation and the action that CVS is taking.

“I want to be crystal clear: this company does not tolerate harassment or hostile, abusive or discriminatory behaviors of any kind from any employee – regardless of position,” Lynch wrote. “We also will not tolerate inaction from leaders who are responsible for escalating concerns or allegations raised by our colleagues.”

In the memo, Lynch added that the company is stepping up how it handles internal reports and investigations. She said it has created the Office of Workplace Assistance, which she will personally oversee along with the company’s chief policy officer and general counsel, Tom Moriarty.

“We want to make sure that you have access to a trusted resource to report anything concerning that you have experienced, witnessed, or are made aware of,” she said in the memo. “And, regardless of how you report concerns, we want to assure you that these issues will be reviewed by a team with an independent and impartial lens.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.