Stericycle Resolves Investigations with Over $56 Million Agreement for Failures in Handling Controlled Substances

Stericycle Inc., an international waste management company based in Lake Forest, Illinois, has agreed to pay more than $56 million to resolve criminal and civil investigations into its improper handling of controlled substances between 2015 and 2020, U.S. Attorney Eric Grant announced on May 30, 2026.

The company collected, transported, and disposed of pharmaceutical waste for healthcare providers across the United States and abroad. According to court documents, Stericycle was registered with the Drug Enforcement Administration (DEA) as a reverse distributor, allowing it to receive unwanted, unusable, or expired controlled substances.

However, the company circumvented strict recordkeeping, reporting, and security requirements by using temporary storage facilities not registered with the DEA, which were not subject to regular inspections. Security was inadequate at many locations, including a former facility in Rancho Cordova, California, where controlled substances were stored in unlocked trailers within fenced yards, and several security cameras were non-operational.

The company also failed to notify the DEA of thefts and significant losses as required by law, and on four occasions offered unsupported justifications for not filing required Form 106s. As part of a one-year deferred prosecution agreement with the Department of Justice, Stericycle will pay a $19.08 million criminal penalty and $37.81 million to resolve civil liability for repeated violations of the Controlled Substances Act.

The company has agreed to enhance its compliance program, including independent oversight, training, and reporting to the Department of Justice. The investigation was conducted by the DEA and the FBI, and the case is being prosecuted by Assistant U.S.

Attorneys Michael D. Anderson and Adrian T.

Kinsella, with Assistant U.S. Attorney David E.

Thiess assisting with the civil settlement.