CVS' Omnicare Agrees to $15.3M Opioid Deal With Feds
Omnicare agreed to settle claims brought by the U.S. Drug Enforcement Administration and federal prosecutors that it dispensed opiate pharmaceuticals to long-term care facilities without valid prescriptions.
May 13, 2020 at 02:23 PM
3 minute read
CVS subsidiary Omnicare Inc. has agreed to pay $15.3 million to settle claims brought by the U.S. Drug Enforcement Administration and federal prosecutors that it illegally dispensed opiate pharmaceuticals to long-term care facilities, such as assisted living and skilled nursing sites.
The settlement is among the most significant to involve a federal investigation into opioid distribution by a pharmacy, although the Department of Justice has charged individual pharmacies across the country.
In a Wednesday announcement, federal authorities said Omnicare agreed to pay the civil penalties to resolve allegations that it dispensed opioids and other controlled substances without valid prescriptions.
"Omnicare dispensed powerful opioids without valid prescriptions and failed to inform federal authorities of significant losses of opioids and other drugs," said U.S. Attorney Nicola Hanna, of the Central District of California, who reached the agreement, along with the DEA and U.S. attorneys in the Eastern District of California, Colorado, Oregon and Utah. "With the opioid crisis still a very real concern, every entity that handles dangerous drugs will be held accountable to ensure powerful narcotics are properly dispensed and not diverted to the black market."
CVS acquired Omnicare in 2015.
"Omnicare has entered into a settlement agreement with the U.S. Drug Enforcement Administration and certain U.S. attorneys' offices to resolve allegations dating back to 2012 concerning the handling and processing of controlled substance prescriptions at some of its long-term care pharmacy locations," said CVS Health spokesman Mike DeAngelis. "The matter was settled to avoid the expense and uncertainty of potential litigation, and there was no admission of wrongdoing. This matter did not involve any of CVS Health's other businesses, including CVS Pharmacy, CVS Caremark or Aetna."
Several pharmacies, including CVS, are set to go to trial on Nov. 9 against two Ohio counties as part of the multidistrict litigation over the opioid crisis. The counties allege the pharmacies created a public nuisance in distributing opiate pharmaceuticals.
Opioid distributors and manufacturers, such as Insys Therapeutics and Reckitt Benckiser Group, have agreed to settle civil and criminal investigations by the DOJ for more than $1 billion.
According to federal authorities, many of Omnicare's opioid distributions came in "emergency kits," over which it failed to maintain control in violation of the federal Controlled Substances Act. Omnicare allowed the facilities to remove opioids and other controlled substances from the emergency kits before obtaining valid prescriptions, according to Wednesday's announcement. Under its agreement, Omnicare must increase its auditing and monitoring of those emergency kits.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All'New Circumstances': Winston & Strawn Seek Expedited Relief in NASCAR Antitrust Lawsuit
3 minute readConsumer Cleared to Proceed With Claims Against CVS 'Non-Drowsy' Medication, Judge Says
4 minute read'Water Cooler Discussions': US Judge Questions DOJ Request in Google Search Case
3 minute readDivided State Court Reinstates Dispute Over Replacement Vehicles Fees
5 minute readTrending Stories
- 111 Red State AGs Demand Damages in Antitrust Lawsuit Shaming ESG Climate Investors
- 2In-House Moves of Month: Discover Fills Awkward CLO Opening, Allegion GC Lasts Just 3 Months
- 3Delaware Court Holds Stance on Musk's $55.8B Pay Rescission, Awards Shareholder Counsel $345M
- 4'Go 12 Rounds' or Settle: Rear-End Collision Leads to $2.25M Presuit Settlement
- 52 Federal Judges Rescind Senior Status After Trump Win. Might More Follow?
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250