Omnicare to pay $98 million to settle kickback charges
Contemporary Long-Term Care Weekly, November 5, 2009
The Justice Department announced on Tuesday that Omnicare Inc., which faced charges involving kickback arrangements with several nursing homes and pharmaceutical companies, will pay $98 million to settle outside of court, according to The Wall Street Journal.
One of those pharmaceutical companies, IVAX Pharmaceuticals, a unit of Teva Pharmaceutical Industries Ltd., has agreed to pay $14 million to settle its involvement in a kickback scheme with Omnicare, which disputed the Justice Department’s findings in a written statement. Johnson & Johnson is also alleged to have been involved in the kickbacks. According to the Justice Department, Omnicare’s apparent actions resulted in false Medicare and Medicaid claims.
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