Omnicare and CVS found liable for false claims in healthcare fraud case

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Edward Y. Kim Acting United States Attorney | Official Website

Omnicare and CVS found liable for false claims in healthcare fraud case

A federal jury has found Omnicare, the largest long-term care pharmacy in the United States, liable for dispensing drugs without valid prescriptions. The case, which focused on fraudulent activities in assisted living and residential long-term care facilities, resulted in Omnicare being ordered to pay $135,592,814 in damages. These damages arose from over three million false claims billed to Medicare, Medicaid, and TRICARE.

Under the False Claims Act, the government can claim up to three times the assessed damages, which amounts to $406,778,442, plus statutory penalties that will be set by the court. The verdict is considered one of the largest damages rulings in a False Claims Act case. Additionally, CVS Health Corporation, the parent company of Omnicare, was found liable for its role in submitting these false claims.

Jay Clayton, U.S. Attorney, remarked, "I thank the women and men of our Civil Division for continuing to pursue those who seek to exploit the healthcare system. I also thank the U.S. Department of Health and Human Services and the Department of Defense for their support and assistance throughout this case."