Omnicare settles federal whistleblower suit

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An Illinois federal judge approved the dismissal of a whistleblower lawsuit against Omnicare, following a settlement agreement on July 9,according to local media reports.

Although a deal between Omnicare, the U.S. government, and the states of Illinois and Florida was reached “in principle” last August, the agreement was delayed a year, the Cincinnati Enquirer reported. The case, filed under the False Claims Act, went on for six years after its initial filing.

The agreement terms were not released.

The case involved former employee Maureen Nehls saying that Omnicare paid a kickback to owners of Total Pharmacy Services, LLC, during the $25 million purchase of the company. The payment allowed Omnicare to gain contracts with nursing homes owned or controlled by the kickback recipients, Philip and Morris Esformes, the suit claimed.

The Esformes' deny receiving kickbacks and are scheduled to go to trial in August to fight the allegations in a separate case.