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Beneficial Holdings sues CVS; CVS countersues over venue

SHARE Beneficial Holdings sues CVS; CVS countersues over venue

Salt Lake-based nutraceutical company Beneficial Holdings Inc. said Tuesday it has sued retailer CVS Pharmacy Inc. and its product broker Contemporary Marketing Inc.

Beneficial said it had attempted for months to collect payment for products it manufactured and shipped to CVS in response to CVS purchase orders.

The suit, filed in federal court in Utah, was followed by CVS filing a suit in district court in Rhode Island, seeking to have the issues about payment of the invoices heard there.

Beneficial's suit alleges several causes of action against each defendant, including fraud, breach of contract, interference with contractual relations and failure of CVS to pay its $1.2 million bill. The alleged failure to pay has cost Beneficial that $1.2 million in revenue "as well as millions of additional dollars in lost profits and sales," Beneficial said in a prepared statement Tuesday.