Statement Of U.S. Attorney Jay Clayton On The Verdict In U.S. V. Omnicare And CVS Health Corporation
Omnicare and its parent CVS Health Corporation were found liable for violating the False Claims Act by submitting over three million fraudulent drug claims to Medicare, Medicaid, and TRICARE.
A unanimous jury found Omnicare and CVS Health Corporation liable for fraudulently dispensing drugs without valid prescriptions to elderly and disabled patients. The verdict assessed damages at $135,592,814 for over three million false claims submitted to Medicare, Medicaid, and TRICARE. Under the False Claims Act, the government is entitled to $406,778,442 in treble damages plus additional statutory penalties.
A unanimous jury found Omnicare, the nation's largest long-term care pharmacy, and its parent company CVS Health Corporation liable for violating the federal False Claims Act. The defendants were found to have fraudulently dispensed drugs without valid prescriptions to elderly and disabled individuals in residential long-term care facilities. This misconduct resulted in over three million false claims to Medicare, Medicaid, and TRICARE. The jury assessed damages at $135,592,814, which entitles the government to triple that amount, totaling $406,778,442 plus statutory penalties. This verdict represents one of the largest damages awards ever rendered in a False Claims Act case. The successful prosecution followed a four-week trial in the Southern District of New York involving collaboration between the DOJ, HHS, and the Department of Defense.
Extracted insights
- $406.78M $406,778,442 $100M–$1B
- $135.59M $135,592,814 $100M–$1B
- company cvs health corporation
- person cvs health corporation liable
- person drugs without valid prescriptions
- person false claims
- person omnicare liable
- person unanimous jury
- Unanimous Jury Found Omnicare Liable
- Omnicare Fraudulently Dispensed Drugs Without Valid Prescriptions
- Jury Found Omnicare Billed Medicare, Medicaid, and TRICARE For Over Three Million False Claims
- False Claims Resulted In $135,592,814 In Damages
- Government Is Entitled To $406,778,442
- Jury Found CVS Health Corporation Liable
- CVS Health Corporation Caused Omnicare To Submit False Claims
Press Release Statement Of U.S. Attorney Jay Clayton On The Verdict In U.S. V. Omnicare And CVS Health Corporation Tuesday, April 29, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York False claims in the healthcare industry cost every American. Today, a unanimous jury found Omnicare, the country’s largest long-term care pharmacy, liable for fraudulently dispensing drugs without valid prescriptions to elderly and disabled people in assisted living facilities and other residential long-term care facilities. After a four-week trial, the jury found that Omnicare billed Medicare, Medicaid, and TRICARE for over three million false claims resulting in $135,592,814 in damages. Under the federal False Claims Act, the Government is entitled to three times the amount of these assessed damages, or $406,778,442, plus statutory penalties to be determined by the Court. This is one of the largest damages verdicts rendered by a jury in a False Claims Act case. The jury also found CVS Health Corporation, Omnicare’s parent, liable for causing Omnicare to submit false claims. I thank the women and men of our Civil Division for continuing to pursue those who seek to exploit the healthcare system. I also thank the U.S. Department of Health and Human Services and the Department of Defense for their support and assistance throughout this case. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated April 29, 2025 Component USAO - New York, Southern Press Release Number: 25-097
Press Release Statement Of U.S. Attorney Jay Clayton On The Verdict In U.S. V. Omnicare And CVS Health Corporation Tuesday, April 29, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York False claims in the healthcare industry cost every American. Today, a unanimous jury found Omnicare, the country’s largest long-term care pharmacy, liable for fraudulently dispensing drugs without valid prescriptions to elderly and disabled people in assisted living facilities and other residential long-term care facilities. After a four-week trial, the jury found that Omnicare billed Medicare, Medicaid, and TRICARE for over three million false claims resulting in $135,592,814 in damages. Under the federal False Claims Act, the Government is entitled to three times the amount of these assessed damages, or $406,778,442, plus statutory penalties to be determined by the Court. This is one of the largest damages verdicts rendered by a jury in a False Claims Act case. The jury also found CVS Health Corporation, Omnicare’s parent, liable for causing Omnicare to submit false claims. I thank the women and men of our Civil Division for continuing to pursue those who seek to exploit the healthcare system. I also thank the U.S. Department of Health and Human Services and the Department of Defense for their support and assistance throughout this case. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated April 29, 2025 Component USAO - New York, Southern Press Release Number: 25-097