CVS’s Omnicare Files Bankruptcy After $949 Million Judgment (1)

CVS Health Corp.subsidiary Omnicare Inc. has filed for bankruptcy after the pharmacy-services provider was ordered to pay $949 million over claims it improperly dispensed prescription drugs to individuals in long-term care.

Omnicare and certain affiliates sought court protection Monday in Texas listing assets of at least $100 million and liabilities of between $1 billion and $10 billion on a Chapter 11 petition. The $949 million civil judgment is listed as Omnicare’s largest unsecured debt, though the company is challenging it.

The company has lined up $110 million in Chapter 11 financing to fund its operations and the bankruptcy. ...