On June 25, the U.S. Department of Justice announced that it had settled with Omnicare Inc. in two matters alleging that kickbacks resulted from below-cost discounts offered to skilled nursing homes as an inducement to select Omnicare as their pharmacy provider. The cases, captioned United States ex rel. Gale v. Omnicare, and United States ex rel. Silver v. Omnicare, are both qui tam whistle blower cases that will be resolved by the $124 million settlement.
In Gale, which was filed by Donald Gale on Jan. 19, 2010, the relator alleged a so-called “swapping” kickback scheme in which Omnicare was alleged to have traded heavy discounts on prescription drugs covered under Medicare Part A in exchange for the right to service the nursing home’s residents whose drugs were covered under Medicaid and Medicare Part D. The DOJ declined to intervene in the action on April 8, 2011. Silver, which was filed by relator Marc Silver on March 4, 2011, alleged very similar facts to the Gale complaint. On Feb. 9, 2013, the DOJ declined to intervene in the action.
Article originally published in Law360 on July 21, 2014.
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.
Topics: Anti-Kickback Statute, DOJ, Healthcare, Kickbacks, Medicare, Medicare Part A, Omnicare, Qui Tam, Settlement, Whistleblowers
Published In: Civil Procedure Updates, Health Updates, Science, Computers & Technology Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Latham & Watkins LLP | Attorney Advertising