Martin & Jones, PLLC
Call today for a Free consultation.

Omnicare Settles Suit Whistleblower Suit Over Reimbursement Claims

Omnicare, Inc., a supplier of drugs to nursing homes, agreed to settle a whistleblower lawsuit claiming it paid a kickback in buying a pharmacy company and that it submitted false claims for reimbursement to government health insurers. The whistleblower lawsuit was filed in 2007. The whistleblower asserted that Omnicare’s $25 million purchase of Total Pharmacy Services, LLC in 2004 included a kickback to one of its owners. That payment helped Omnicare win contracts with nursing homes owned or controlled by the pharmacy company owner’s father. Those contracts with nursing homes provided Omnicare thousands of elderly and disabled customers.

The suit against Omnicare was brought under the False Claims Act, a statute which allows whistleblowers to sue on behalf of the government and share in any recovery. In May, Omnicare settled a case with the Justice Department for $50 million. That case involved Omnicare providing nursing home residents medicines without a prescription, with missing prescription information, or without documentation. In November 2009, Omnicare agreed to pay $98 million to settle civil allegations by the federal government and some states that it took kickbacks from Johnson & Johnson.

The False Claims Act has served an important role in recovering monies out of which government entities were defrauded. With a whistleblower suit, under either the federal False Claims Act or state-law counterparts, a whistleblower files suit on behalf of the government. The whistleblower shares in the amounts recovered through the suit.

No Comments

Leave a comment
Comment Information

Testimonials

Contact US Get Help Now

Send us an email or call us today at 800-662-1234 to speak with an attorney about your claim or to arrange a free consultation. It costs nothing to call and there is no obligation. In fact, we are not paid until your case is resolved. Se habla español. If you are unable to travel to one of our offices in Raleigh, Durham and Wilmington, we will meet with you at your location.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Raleigh Office
410 Glenwood Avenue
Suite 200
Raleigh, NC 27603

Toll Free: 800-662-1234
Phone: 919-821-0005
Raleigh Law Office Map

Wilmington Office
1213 Culbreth Drive
Suite 121
Wilmington, NC 28405

Toll Free: 800-662-1234
Phone: 910-256-4005
Wilmington Law Office Map

Durham Office
302 East Pettigrew Street
Suite 330
Durham, NC 27701

Toll Free: 800-662-1234
Phone: 919-544-3000
Durham Law Office Map