Omnicare settles whistleblower case in Illnois

Omnicare Inc. has settled a 2007 lawsuit that accused the company of violating federal anti-kickback laws when it acquired Total Pharmacy Services, an institutional pharmacy provider, in 2004.

The lawsuit was initially filed under seal but became public in 2010. In 2012, Omnicare made an accounting provision for the litigation, but never disclosed how much it set aside for the case. U.S. District Judge John J. Tharp approved a settlement July 9 that dismissed all pending claims against the company.

Terms of the settlement were not revealed.

The False Claims Act case was one of several filed in different states over the Total Pharmacy Services acquisition. 

The suits were filed by Maureen Nehls, a former vice president with the pharmacy company, and Adam Resnick, a consultant on the deal. The pair alleged Omnicare locked in 10-year contracts with nursing homes owned by the former owner of Total Pharmacy Services.

The structure of the deal allegedly violated state and federal rules. Omnicare settled a Massachusetts case based on similar allegations for $98 million, according to Law360, which is a legal industry subscription website.

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