Omnicare agrees to $124M deal for alleged kickback

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Associated Press

Posted on June 25, 2014 at 7:00 PM

Updated Thursday, Jun 26 at 6:01 AM

CLEVELAND (AP) — Omnicare Inc. has agreed to pay $124 million to settle a whistleblower lawsuit that alleged the company engaged in a kickback scheme with skilled-nursing facilities nationally.

The company, based in Cincinnati, is the nation's largest provider of drugs and pharmacy services to skilled-nursing facilities.

A Wednesday statement from the U.S. Department of Justice says Omnicare gave discounts to some facilities to keep the company as their drug provider for elderly Medicare and Medicaid recipients. The news release also accuses the company of false billing.

Omnicare said in a statement Wednesday that it committed no wrongdoing and settled the case to end litigation. It stems from a 2010 whistleblower lawsuit filed by a former Omnicare employee. He gets about $17 million of the settlement.

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