Senior care pharmacy Omnicare and CVS Health (NYSE: CVS) have agreed to pay $440 million to the U.S. Department of Justice to resolve a nearly $950 million claim, according to a U.S. bankruptcy court filing.
CVS will pay $130 million within 14 days, with the remaining $310 million due by March 15, 2028.
The agreements come from good faith negotiations between Omnicare and its debtors, the DOJ, CVS and the committee overseeing the case, court documents state.
“We’ve reached agreements with the U.S. Department of Justice (DOJ) and the Omnicare estate and Unsecured Creditors’ Committee subject to Bankruptcy Court approval in Omnicare’s chapter 11 case,” a CVS Health spokesman said in a statement. “The agreements are not an admission of liability or wrongdoing and were agreed upon to avoid the time and expense of further litigation. The Omnicare estate and Unsecured Creditors’ Committee agreement resolves mutual claim and distribution issues arising out of Omnicare’s chapter 11 case. We’re pleased to put this matter behind us as part of a successful conclusion of the Omnicare chapter 11 case.”
The settlement comes after Omnicare was found liable for improperly billing the federal government, resulting in more than $135 million in damages. The jury in the case found Omnicare billed Medicare, Medicaid and TRICARE for over 3 million false claims and was “one of the largest damages verdicts rendered by a jury in a False Claims Act case,” according to the DOJ in April.
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