CVS Health Denied Bid to Evade Penalties in Drug Fraud Suit (1)

CVS Health Corp. failed to convince a New York federal judge that it isn’t liable for helping subsidiary Omnicare Inc. submit false claims to federal health-care programs.

CVS Health didn’t show that its status as a holding company kept it from directly participating in the submission of Omnicare’s false claims to the government, which is required for liability under the False Claims Act, Judge Colleen McMahon of the US District Court for the Southern District of New York said Thursday, denying the retailer’s request for a directed verdict.

A jury in April found that Omnicare owes the government $136 million ...