CVS’s Omnicare Pays $23 Million to Resolve Whistle-Blower Suit

CVS’s Omnicare, once the nation’s largest pharmacy for nursing homes, will pay $23 million to settle whistle-blowers’ claims that it took kickbacks from a drugmaker for pushing its antidepressants on Medicaid patients (United States ex rel. Banigan v. Omnicare, D. Mass., No. 1:07-cv-12153, settlement 5/25/17).

Omnicare Inc. violated the federal False Claims Act by seeking reimbursement from Medicaid for antidepressants made by Organon USA Inc., the original complaint alleged. Omnicare also allegedly violated the Medicare-Medicaid Anti-Fraud and Abuse Amendments, known as the kickback statute, by receiving illegal payments from the drugmaker. The payments were “disguised as rebates or ...