Omnicare, Inc. to Pay $28.125 Million Healthcare Fraud Settlement

PIERRE, S.D. –  Attorney General Marty Jackley announced that South Dakota has joined with other states and the federal government to reach an agreement with Omnicare Inc. (Omnicare), acquired by CVS Health Corporation effective August 18, 2015, to settle civil allegations that Omnicare conspired with Abbott Laboratories (Abbott) through a number of disguised kickback arrangements to increase overall utilization of Depakote.  The states contend that from January 1, 2001 through December 31, 2008, Omnicare knowingly solicited and received illegal remuneration from drug manufacturer Abbott in the form of agreements that required Omnicare to engage in certain promotional programs, grants, and other financial support.  This alleged conduct resulted in false claims to Medicaid and other federal healthcare programs.

Omnicare will pay the states and the federal government a total of $28.125 million in civil damages to compensate Medicaid, Medicare, and various federal healthcare programs for harm suffered as a result of its conduct.  This settlement is based on two qui tam cases that were consolidated and are pending in the United States District Court for the Western District of Virginia in Abingdon, Virginia.  The cases were filed under federal and state false claims statutes.  The total portion of the settlement amount recovered by South Dakota is $52,272.16, of which $34,180.28 will be retained by the federal government as the federal Medicaid share. The remaining $18,091.88 will go to the state general fund to offset alleged Medicaid damages in this case.

The South Dakota Medicaid Fraud Control Unit and the South Dakota Department of Social Services assisted in recovering the settlement money.

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