Omnicare agrees to settle kickback case for $120M

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Associated Press

Posted on October 23, 2013 at 12:02 PM

Updated Wednesday, Oct 23 at 12:02 PM

CINCINNATI (AP) — Omnicare Inc., the nation's biggest dispenser of prescription drugs in nursing homes, says it will pay $120 million to settle a whistleblower lawsuit.

The 2010 lawsuit accused the Cincinnati-based company of giving kickbacks to nursing homes for patient referrals at higher health care costs.

Omnicare says in a statement Wednesday that the company agreed to settle "to avoid continued litigation and focus on its mission of helping to ensure the health of seniors and other patient populations in a cost-effective manner."

The federal government stands to get about $84 million of the settlement, with the former Omnicare pharmacist who filed it in federal court in Ohio set to get up to $36 million.

Omnicare settled another lawsuit in 2009, when it agreed to pay $98 million stemming from kickback allegations.

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