Omnicare controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2019
DOJ sues Omnicare and CVS over prescription billing allegations
Lawsuit filed
The U.S. Attorney for the Southern District of New York sued Omnicare and parent CVS Health, alleging that Omnicare fraudulently billed federal health care programs for drugs dispensed on expired or otherwise invalid prescriptions. CVS denied the allegations and said it would defend the case.
Company response
Denial — CVS Health
CVS refuted the charges in the lawsuit in a statement, saying, “We do not believe there is merit to these claims and we intend to vigorously defend the matter in court.
Denial — CVS Health
CVS Health spokesman Mike DeAngelis said the claims have no merit and the company plans to “vigorously defend the matter in court.”
Source excerpt
The lawsuit claims that Omnicare billed and dispensed drugs to elderly and disabled individuals based on “stale, invalid prescriptions,” including antipsychotics, anticonvulsants and antidepressants.
The DOJ has sued for damages and civil penalties, claiming the company submitted “hundreds of thousands of false claims to Medicare, Medicaid and TRICARE.
The Department of Justice said in federal court papers filed Tuesday that Omnicare’s pharmacies sent drugs to people living in residential facilities based on “stale, invalid prescriptions.” It accused the company of fraudulently billing government-funded programs like Medicaid and Medicare for drugs dispensed without a valid prescription from 2010 to 2018.
2013
Settlement related to Total Pharmacy Services acquisition
A whistleblower lawsuit concerning alleged kickbacks associated with Omnicare's 2004 acquisition of Total Pharmacy Services was reportedly resolved with a $17.2 million payment by Omnicare and a separate $5 million payment by Total Pharmacy's owners.
2012
Antitrust challenge to PharMerica takeover
The FTC sued to stop Omnicare's hostile takeover of PharMerica, alleging that the merger would create excessive concentration in long-term-care pharmacy and could increase prices and government spending. The proposed acquisition was terminated.
2010
False Claims Act case involving nursing-home operators
A case brought under the False Claims Act alleged that Omnicare paid nursing-home operators to secure pharmacy business, potentially implicating Medicare and Medicaid reimbursement. Omnicare settled with the federal government for $19.8 million; related nursing-home parties reached separate settlements.
2009
Federal kickback allegations and $98 million settlement
Omnicare paid $98 million to settle five whistleblower lawsuits and government charges alleging that it had paid or solicited kickbacks. The allegations included claims involving Johnson & Johnson and recommendations of Risperdal for nursing-home patients. Omnicare admitted no wrongdoing.