Omnicare Files for Bankruptcy After $949 Million Judgment

Dallas, Texas — Omnicare LLC, a subsidiary of CVS Health, filed for Chapter 11 bankruptcy protection on Monday after a federal court ordered the company to pay $949 million. This judgment stems from claims that Omnicare improperly dispensed prescription drugs to patients in long-term care facilities.

The court ruling, made in July, concluded that Omnicare had illegally charged the U.S. government for these drugs. As a result, the company listed assets of at least $100 million and liabilities between $1 billion and $10 billion in its bankruptcy filing.

Omnicare is challenging the $949 million judgment, which it has identified as its largest unsecured debt. The Chapter 11 process may delay the government’s efforts to collect this substantial payment. CVS Health announced it plans to appeal the court’s decision.

In a statement, Omnicare said that the bankruptcy would allow it to restructure its finances, potentially including a sale of the company. “The company also intends to use this process to address other financial challenges facing the broader long-term care pharmacy industry and to evaluate its restructuring options,” they noted.

Despite filing for bankruptcy, Omnicare reassured customers that its services would continue, stating that regular operations and employee wages would remain unaffected.

This story is still developing, and further updates will be provided as more information becomes available.