Reported / Citable
Background
The United States sued Nnwood Pharmacy LLC and its owners, Cheryl Brew Greenleaf and Wendell Kirk Greenleaf, seeking civil penalties and injunctive relief under the Controlled Substances Act. The government alleged that the Houston pharmacy unlawfully dispensed controlled substances and failed to maintain required records.
DEA investigators audited the pharmacy in July 2021. The government submitted evidence that the pharmacy had dispensed prescriptions bearing red flags, including invalid DEA registration numbers, prescriptions from distant practitioners, and prescriptions for male customers from practitioners licensed in obstetrics and gynecology. The audit also found missing or incomplete controlled-substance records, including unavailable Schedule II ordering forms. Defendants did not respond to the government’s summary-judgment motion.
The Court’s Holding
Judge David Hittner granted the government’s motion for partial summary judgment. The court held that the unrebutted summary-judgment record established no genuine dispute of material fact that defendants unlawfully dispensed controlled substances and violated the CSA’s recordkeeping requirements.
The court emphasized that a failure to respond does not itself justify summary judgment, but concluded the government had carried its initial Rule 56 burden. It found the evidence—including the seized fraudulent prescriptions and Cheryl Greenleaf’s deposition testimony about her knowledge of prescription red flags and recordkeeping duties—sufficient to establish liability.
The court vacated trial settings and ordered that civil money penalties be awarded under 21 U.S.C. § 842(c). It directed the United States to submit a memorandum and proposed order addressing the appropriate penalty amounts by July 20, 2026.
Key Takeaways
- A pharmacy may face CSA liability for dispensing prescriptions despite obvious red flags bearing on their legitimacy.
- DEA registrants must maintain complete and accurate controlled-substance records, including required ordering forms.
- An unopposed summary-judgment motion still requires supporting evidence, but unrebutted proof can establish liability as a matter of law.
Why It Matters
The decision underscores that pharmacies and their owners must actively scrutinize suspicious controlled-substance prescriptions and comply with federal recordkeeping rules. The ruling resolves liability, while leaving the amount of civil penalties for further briefing and determination.