Omnicare Files for Bankruptcy

CVS subsidiary Omnicare filed for Chapter 11 bankruptcy following a $949 million judgment. The judgment found that Omnicare improperly dispensed prescription drugs to individuals in long-term care. After a 4-week trial, the court found that Omnicare billed Medicare, Medicaid, and TRICARE for over 3 million false claims which resulted in over $135 million in damages. The Department of Justice claimed that Omnicare put thousands of patients at risk because people were taking the same drugs for months, or even years, without talking to a doctor. Some of the medications Omnicare was found liable of dispensing without proper prescriptions were for dementia, depression, and heart disease. The parent company, CVS, stated that Omnicare was filing voluntary bankruptcy "to resolve issues related to its recent litigation" and to "address other financial challenges."